AUD/USD jumps to mid-0.5800s and retreats, back around 0.5800 mark

  • AUD/USD managed to recover over 300 pips from over 17-year lows set earlier.
  • The USD might continue to benefit from tightening liquidity and cap further gains.

The AUD/USD pair spiked to fresh session tops, around mid-0.5800s in the last hour, albeit quickly retreated around 50 pips thereafter.

The pair on Thursday witnessed a dramatic intraday turnaround and has now recovered over 300 pips from the vicinity of the 0.5500 psychological mark, or 17-1/2 year lows set in the wake of a selloff in industrial metals on Chinese exchanges.

Meanwhile, the Reserve Bank of Australia's expected decision to cut interest rates by 25bps and an announcement to commence a government bond purchase program from Friday provided a much-needed respite for the Australian dollar.

The relief rally seemed rather unaffected by a sustained buying surrounding the US dollar. However, a fresh leg down in the US Treasury bond yields capped any further upside for the USD 
and provided an additional boost to the major.

Meanwhile, mounting fears over the economic fallout from the coronavirus pandemic and tightening liquidity conditions might continue to boost the greenback's status as the global reserve currency and keep a lid on any runaway rally for the major.

Technical levels to watch


Today last price 0.5801
Today Daily Change 0.0027
Today Daily Change % 0.47
Today daily open 0.5774
Daily SMA20 0.645
Daily SMA50 0.6648
Daily SMA100 0.6758
Daily SMA200 0.6804
Previous Daily High 0.6029
Previous Daily Low 0.5701
Previous Weekly High 0.6686
Previous Weekly Low 0.6122
Previous Monthly High 0.6775
Previous Monthly Low 0.6434
Daily Fibonacci 38.2% 0.5826
Daily Fibonacci 61.8% 0.5904
Daily Pivot Point S1 0.564
Daily Pivot Point S2 0.5507
Daily Pivot Point S3 0.5313
Daily Pivot Point R1 0.5968
Daily Pivot Point R2 0.6162
Daily Pivot Point R3 0.6296



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