AUD/USD battles 0.6000 amid broad USD strength, oil slump

AUD/USD attempting recovery once again on 0.6000.
US dollar bulls take a breather before the next push higher.
Eyes on coronavirus updates, as the focus shifts to RBA decision.

Dhwani Mehta FXStreet

Having kick-started the week on the front foot, AUD/USD is trying once again to extend the bounce from a five-day low of 0.5979. At the time of writing, the spot trades at 0.6000, up 0.10% so far.

RBA: Rate cut, QE – What next?

Despite the uptick to 0.6017 highs, the commodity-currency lacks follow-through amid a sharp drop in oil prices while gold prices also traded mildly lower. Further, the safe-haven demand for the US dollar remains intact, keeping the greenback broadly underpinned.

Meanwhile, US President Trump sounds somewhat upbeat on the virus situation in his country, adding further to the dollar demand. Trump said, in the Task Force briefing, he hopes to see levelling off of coronavirus in the hottest spots. The US currency shrugged-off a loss of 701,00 jobs in the US economy last month due to the virus impact.

Looking ahead, the downside in the major will likely remain capped, as the Reserve Bank of Australia (RBA) is expected to stand pat on its monetary policy decision due on Tuesday after it announced an emergency rate cut and bond-buying program last month. The latest RBA minutes revealed that the board said that there is no appetite for negative interest rates.

AUD/USD technical levels to watch

AUD/USD

Overview
Today last price	0.5999
Today Daily Change	0.0002
Today Daily Change %	0.03
Today daily open	0.5997

Trends
Daily SMA20	0.6093
Daily SMA50	0.6437
Daily SMA100	0.6654
Daily SMA200	0.6748

Levels
Previous Daily High	0.6076
Previous Daily Low	0.598
Previous Weekly High	0.6214
Previous Weekly Low	0.598
Previous Monthly High	0.6686
Previous Monthly Low	0.5509
Daily Fibonacci 38.2%	0.6016
Daily Fibonacci 61.8%	0.6039
Daily Pivot Point S1	0.5959
Daily Pivot Point S2	0.5921
Daily Pivot Point S3	0.5863
Daily Pivot Point R1	0.6056
Daily Pivot Point R2	0.6114
Daily Pivot Point R3	0.6152

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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