The Australian Dollar is expected to hit more turbulence in the day ahead as we continue to witness the “whip-saw” price action.
The AUS/USD lost further ground overnight after a knee-jerk start to the week which viewed an intraday high of US$0.6280 before plummeting to a fresh near 12-year low of US$0.6070.
Despite the bold move, on Sunday, when the U.S. Federal Reserve hit the “emergency button” for the second time and announced they were dropping its benchmark interest rate to zero the Australian Dollar bears remains at large.
Later this morning, the RBA will release the ‘Minutes of its latest meeting’.
From the surprising move earlier on Monday, from the Reserve Bank of New Zealand (RBNZ) 0.75% rate cut to 0.25%, markets are now on the watch for some similar policy response from the Reserve Bank of Australia (RBA) in the coming days, after the RBA announced it would be meeting on Thursday, in order to discuss policy measures to support the Australian economy through the coronavirus crisis.
From a technical standpoint, it is now assessed the market bears will continue to weigh on the support and eventually claim the lower region of US$0.6000, which is expected to extend towards the period recorded back in 2003 around lows around the area of US$0.5600- US$0.5800.
Due to the high volatility, the resistance is located at US$0.6245-90, with the immediate resistance located from US$0.6165-85.