AUD/USD Forecast: Australian government announced new stimulus measures
|AUD/USD Current Price: 0.5785
- Australian PM Morrison announced a stimulus package of A$66.4 billion.
- Coronavirus pandemic to continue to set the tone for major currencies.
- AUD/USD remains extremely oversold despite bouncing 300 pips from its lows.
The AUD/USD pair posted a modest advance on Friday to finish the week around 0.5800, down for a second consecutive week and up from a multi-year low of 0.5506. The Aussie advanced against its American rival to 0.5985 as Fed’s decision to expand the currency swap lines to nine more banks brought some temporal relief to markets, which anyway was reverted on Friday, as the coronavirus crisis keeps escalating worldwide.
On Sunday, Australian PM Morrison announced the government would pump in A$66.4 billion into the economy to counter the economic impact of the coronavirus pandemic. The government will provide A$25.2 billion in support to businesses and not-for-profit charities while also offer support to small businesses. Morrison added that more measures and more support are in the pipeline. Australia won’t release relevant data this Monday.
AUD/USD short-term technical outlook
The AUD/USD pair remains extremely oversold, but chances that it could turn the tie are extremely low, given the crisis context. In the daily chart, technical indicators have recovered modestly but remain in extreme levels, while the 20 DMA heads south almost vertically over 500 pips above the current level. In the 4-hour chart, the pair tried to recover above a bearish 20 SMA, but settled below it, while technical indicators have recovered from extreme oversold levels, but lost their strength within negative levels.
Support levels: 0.5745 0.5700 0.5640
Resistance levels: 0.5840 0.5895 0.5930
View Live Chart for the AUD/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.