AUD/USD remains on the back foot below 0.5600 after RBA’s Lowe

AUD/USD softens as the central bank leased spoke after the rate cut, QE.
RBA announced 25 basis points rate cut, QE following the upbeat Aussie jobs report.
Markets remain volatile amid the global rush to combat the deadly virus.
US data can offer intermediate moves while COVID-19 headlines, stimulus from the Trump administration will be the key.

Anil Panchal FXStreet

AUD/USD trims the post-RBA recovery gains to 0.5565, down 3.6% after Governor Philip Lowe said the bank is already doing what is necessary ahead of the European session on Thursday.

Read: RBA’s Lowe: Doing all that we can to lower funding costs in Australia and support the supply of credit to business

While RBA’s rate cut and bond purchases helped the Aussie to recover from fresh 11-year low, the Aussie PM Morrison showed readiness that the government will announce further measures to combat the virus in the coming days. The national leader also signaled the travel ban to non-Australian, non-residents.

Earlier during the day, ECB announced a multibillion Euro package while the Fed also offered details of Money Market Mutual Fund Liquidity Facility (MMLF) to facilitate lending to financial institutions secured by high-quality assets purchased by those institutions from money market mutual funds.

Given the current rush to safeguard against the disease, the US dollar remains as the market favorite, mainly due to its reserve currency status. On the other hand, the moves offer volatile trading sessions amid downbeat performances of the Asian stocks.

Following the Asian action session, investors will pay attention to the US Philadelphia Fed Manufacturing Index and weekly Jobless Claims for intermediate clues. Though, major attention will be given to the coronavirus updates and the much-awaited US stimulus, likely worth $1.3 trillion as per the latest news.

Technical Analysis

The last few candles on the hourly chart portray the sellers’ exhaustion, which in turn could escalate the recovery moves towards the immediate resistance line near 0.5750. However, the bears are less likely to relinquish control unless AUD/USD prices cross the falling trend line from 2010, at 0.5915 now.

Additional important levels

Overview
Today last price	0.5587
Today Daily Change	-187 pips
Today Daily Change %	-3.24%
Today daily open	0.5774

Trends
Daily SMA20	0.645
Daily SMA50	0.6648
Daily SMA100	0.6758
Daily SMA200	0.6804

Levels
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

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.

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