AUD/USD Forecast: Resurgent coronavirus contagions weigh on the Aussie
|AUD/USD Current Price: 0.6955
- The Australian government announced a six-week lockdown in Melbourne.
- The Reserve Bank of Australia left the cash rate unchanged at 0.25% as expected.
- AUD/USD is technically neutral and holding above the 0.6900 level.
The AUD/USD pair is finishing Tuesday with modest losses in the 0.6950 price zone, retreating from a daily high of 0.6997. The Aussie ignored the RBA monetary policy announcement, as the central bank left its cash rate unchanged at 0.25% as widely anticipated. As they did in their previous meeting, policymakers said that the downturn has been less severe than earlier expected, yet at the same time, remained cautious about longer-term developments amid uncertainty related to the coronavirus pandemic.
Instead, the Aussie fell on news that the government announced a six weeks lockdown in all Metropolitan Melbourne and other surrounding cities amid a new outbreak with 191 new COVID-19 CASES reported. Australia won’t release macroeconomic data this Wednesday.
AUD/USD short-term technical outlook
The AUD/USD pair is neutral in the short-term, although the downside potential remains limited amid broad dollar’s weakness. In the 4-hour chart, the pair is struggling to hold above its 20 SMA, but well above the larger ones, while technical indicators have pared their slides and stabilized around their midlines. A steeper decline could be expected on a break below the 0.6895 support, although buyers may likely reappear ahead of the 0.6800 threshold.
Support levels: 0.6930 0.6895 0.6850
Resistance levels: 0.6995 0.7020 0.7060
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