AUD/USD Price Analysis: Extends losses below 0.6500 following the latest catalysts
- AUD/USD registers three-day losing streak.
- US Coronavirus Task Force Briefing, RBA’s Debelle mainly directed the latest moves.
- 21-day SMA, five-week-old falling trend line restrict near-term upside.
- Bears seem to play around lows marked during the last-week and Tuesday.
In an absence of positive announcements from the US Coronavirus (COVID-19) Task Force Briefing and RBA’s Debelle, AUD/USD remains under pressure around 0.6495 amid the early Wednesday morning in Asia.
The US policymakers failed to offer any fresh headlines concerning President Donald Trump’s earlier promise of ‘major’ economic response.
Following that, RBA’s Deputy Governor Guy Debelle cited fears of the deadly virus but showed relief in weaker Australian dollar while also indicating confidence in the policymakers’ fiscal-monetary steps. In doing so, the RBA diplomat failed to provide any key details of the Aussie central bank’s next moves.
Read: RBA deputy governor, Debelle: Coronavirus causing large increase in risk aversion, uncertainty
As a result, the Aussie pair extends its fall below 0.6500, not to mention a sustained weakness under 21-day SMA and a downward sloping trend line since February 05, 2020.
Traders are currently looking for revisiting the last week’s low, also tested on Tuesday, around 0.6460, ahead of targeting further declines to Monday’s bottom surrounding 0.6310.
Alternatively, a 21-day SMA level of 0.6615 and the short-term resistance line near 0.6645 can keep challenging the buyers targeting early February lows near 0.6660.
AUD/USD daily chart
Trend: Bearish
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
