AUD/USD stays below 0.6200 as the central bankers surprise markets
- AUD/USD drops back to sub-0.6200 on Fed Chair’s presser.
- RBA cheers the Aussie financial system.
- Fed/RBNZ announced surprise rate cuts but the respective central bankers refrain from further moves.
Having gradually risen to 0.6220 from 0.6100 ahead of a few minutes, AUD/USD drops to 0.6180 amid the initial Asian session trading on Monday. The pair seems to take clues from the Fed Chair’s presser as well as RBA comments off-late. The RBA keeps praising the national financial system while providing fewer clues for the future moves.
Read: RBA: Australia's financial system is resilient and well placed to fight coronavirus
Following a surprise rate cut, second in the month, to 0.25% as well as $700 billion worth of a Quantitative Easing (QE), the Federal Reserve Chairman turns down the odd of any FOMC meeting during this week. Earlier, markets were anticipating a 100 basis points cut into the Fed rate.
Read: Breaking: Powell speech: Coronavirus is having a profound effect on US and around the world
Not only the Fed but RBNZ also played its role and joined the league of central bankers announcing rate cuts/QE to ward off the negative implications of the coronavirus (COVID-19).
The risk-tone remains under pressure with S&P 500 Futures down 3.77% to 2,5555 by the press time.
Investors will keep eyes on the co-ordinated central bank moves, coronavirus headlines for fresh impulse. Unless there is good news on the part of the pandemic, a remedy or something, markets are likely to remain volatile while portraying the risk aversion.
Technical Levels
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.
