The Australian dollar has opened the new trading week below 77 cents, failing yet again to overcome stubborn selling resistance above this level in the latter parts of last week.
Here’s the scoreboard as at 10am AEDT:
- AUD/USD 0.7669 , 0 , 0.00%
- AUD/JPY 86.61 , 0.11 , 0.13%
- AUD/CNH 5.2540 , 0.0028 , 0.05%
- AUD/EUR 0.7221 , 0.0003 , 0.04%
- AUD/GBP 0.6173 , -0.0001 , -0.02%
- AUD/NZD 1.0671 , 0.0001 , 0.01%
Ray Attrill, global co-head of FX strategy at the National Australia Bank, said that the US dollar recovered on Friday with the greenback following US stock higher despite a decline in US bond yields.
As a result, the AUD/USD failed to hold above the 77 cent level, finishing the session at .7669.
The daily chart below shows the attempts, and fails, of the AUD/USD to bust through the 77 cent level convincingly in recent months.
With nothing of note on the economic data calendar on Monday, movements in the USD/JPY and USD/CNY — often influential on the US dollar index in Asia — will likely prove influential on broader currency markets today.
The performance of stocks and Chinese commodity futures may also help to guide movements in the Aussie.