The Australian Dollar remains relatively rangebound to start the first week of the new financial year, oscillating between 0.7314 and 0.7406 in overnight trading. The Aussie tested the key resistance level of 0.74 for much of the session but ultimately failed to breach the important line for a meaningful amount of time. Nevertheless, the Aussie changes hands this morning at 0.7385, a marked improvement on yesterdays open.
The Aussie found relief from a variety of sources that led to a nice little recovery from yearly lows against the Greenback. Initially, the catalyst was the RBA which released a notably less dovish statement, helping traders with the broader cash rate narrative. Further throughout the day, risk aversion eased across markets as trade-war concerns calmed slightly, leading to a softening of the Greenback across the board.
Attentions now turn closer to home for Australian investors with Australian month on month Retail Sales due for release as well as Trade Balance data. Conversely, the Australian Dollar’s counterpart enjoys its fourth of July holiday, giving some much-needed respite to global markets.