• 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.

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

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD stabilizes near 1.0850 following NFP-inspired selloff

EUR/USD stabilizes near 1.0850 following NFP-inspired selloff

EUR/USD came under strong bearish pressure and declined below 1.0850 as the US Dollar gathered strength on the impressive January jobs report. With Wall Street's main indexes rebounding from daily lows, however, the pair seems to have found support.

EUR/USD News

GBP/USD falls to 1.2100, looks to post large weekly losses

GBP/USD falls to 1.2100, looks to post large weekly losses

GBP/USD turned south and fell toward 1.2100 after the data from the US revealed that Nonfarm Payrolls increased by 517,000 in January. Although the US Dollar Index retreated modestly in the late American session, the pair remains on track to close the week deep in the red.

GBP/USD News

Gold extends slide to fresh mutliweek lows below $1,870

Gold extends slide to fresh mutliweek lows below $1,870

Gold price extended its slide after breaking below $1,900 and touched its lowest level since January 10 below $1,870. With the US January jobs report showing an impressive 517,000 growth in NFP, the benchmark 10-year US Treasury bond yield recovered above 3.5%, weighing heavily on XAU/USD.

Gold News

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

Assessing the possibility of Bitcoin price crash to $20,000 after US NFP rises to 517,000

The United States unemployment rate for January came in at 3.4% which is lower than forecast of 3.6%. The NFP data shows that 517,000 jobs were added in January, which is much higher than the expected 185,000.

Read more

Amazon Stock Earnings: AMZN sags 5% on AWS revenue miss

Amazon Stock Earnings: AMZN sags 5% on AWS revenue miss

Amazon stock fell 5.1% afterhours on Thursday as the premier online retailer missed EPS overall for the quarter ending in December and saw growth in its cloud division drop to 20%.

Read more

Forex MAJORS

Cryptocurrencies

Signatures