The Australian dollar bulls took another short trip towards the upside overnight and reached an intraday high of US$0.6744 before it’s retreat due to the update of the jump in the Covid-19 coronavirus numbers, which once again, gave the AUD bulls a scare.
In a Thursday press conference, China said it confirmed 15,152 new cases and 254 additional deaths.
Those figures include the ones reported earlier by Hubei province under its new diagnosis methodology.
That brings the country’s total death toll to 1,367 as the number of people infected hit 59,804, according to the government.
Also, Australian data missed the market’s expectation as Consumer Inflation Expectations resulted in 4.0% in February, below the previous 4.7%.
Meanwhile, the Reserve Bank Governor Philip Low participated in a panel discussion yesterday and said, “it is quite likely that we are going to be in this world of low-interest rates for years, if not decades because it is driven by structural factors.”
For now, he added that RBA is not “obsessed” with getting inflation back to 2-3% target in a hurry. RBA Governor Lowe also urged more from the government to help the economy.
“We have not had any fiscal stimulus in Australia,” he said.
“I would like to see both business and government use the opportunity to make investments.
The Australian governments and business can borrow at the lowest rates since Australia became a federation.”
Looking ahead, it is soon likely the market will question whether the bulls have the stamina on taking the US$0.6765-75 challenge as it is still regarded as a supply/sell zone.
Conversely, a decisive break of the critical support level at US$0.6660, would expose the region of US$0.6400, viewed from a broader aspect.