Australian Dollar hits fresh multi-year lows as the support crumbles at US$0.6555 – Bears keep their sights on US$0.6400

February 27, 2020 - 1 month ago
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As the bearish journey unfolds further, the Australian dollar carves in a fresh multi-year low against its rival, the greenback, and extends yesterday’s fall to now ink in a fresh 11-year low at US$0.6541 in late New York.

The AUD/USD pair made another leg lower this week since the initial break of the critical level at US$0.6660 for the first time since March 2009 due to the worsening global sentiment.

Australian data released at the beginning of the day missed the market’s forecast, as Q4 Construction Work Done was down by 3.0%, worse than the -1% expected.

The bearish sentiment continues to weigh on the market over the concerns about the possible effects of the coronavirus outbreak on Chinese economic growth.

Wall Street’s modest bounce overnight was not enough to offset concerns.

On the data front, the Australia Q4 Private Capital Expenditure missed its foreseen at 0.5% and instead came in -2.8%, previous, -0.4%.

Turning back to the technical standpoint, with the US$0.6555 support broken now reveals the next level at US$0.6505, with the US$0.6400 target on the horizon.

The resistance is now located from US$0.6585 minor, with US$0.6620 viewed above.

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