Aussie tests support at 0.7650

The Aussie struggled against the greenback over the weekend but made good ground against the euro and Kiwi, as they suffered from inconclusive election results in their respective zones/countries.

After closing around 0.7690 on Friday the Aussie was looking well positioned for a push higher. Unfortunately resistance at 0.7700 was solid and this initiated the slip in the Aussie as the offshore session continued. With European markets preparing on Friday for the German election the US Dollar found favour with investors, as they moved their funds out of the euro. This strengthening of the greenback saw the Aussie pushed to a low of 0.7655, before support saw it bounce back to finish the session around 0.7660. This morning has seen the Aussie fairly well supported around 0.7650.

Our cross rates improved across the board as the Aussie was also seen as a safe haven currency over the weekend. The biggest gains came against the euro and Kiwi first thing this morning as markets opened in this part of the world. Both currencies were heavily sold off due to the undecided elections in Germany and New Zealand. This in particular saw the euro cross reach 0.6300.

With the German election taking precedence in the market we are unlikely to see a lot of negative US Dollar sentiment this week. We should see another rate hike in the US by Wednesday and that will help the greenback higher. Without any other major releases here or in the US the Aussie is likely to remain under pressure against the US Dollar, but it may still see some further improvements against the cross rates.