The Australian Dollar falls into 17-year low territory along with the technical assessment hitting extreme oversold conditions

March 18, 2020 - 2 weeks ago
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The Australian Dollar tumbled further deep into the bearish trenches and now inks in a fresh 17-year low of US$0.5958, before staging a mild bound to US$0.6000.

Yesterday’s the RBA released the Minutes of its latest Monetary Policy Meeting, which confirmed that the decision to cut the cash rate to 0.5% was driven by policymakers concerns about the impact of the coronavirus outbreak on the economy, and now views the market pricing a possible rate cut in April.

Also adding additional pressure to the AUD decline was from the USD Index substantial advance overnight after President Donald Trump, Treasury Secretary Steven Mnuchin and Vice President Mike Pence gave a televised briefing to outline the steps the administration is taking.

Mnuchin pitched a staggering $1.2 trillion economic response package to Senate Republicans.

“We’re looking at sending checks to Americans immediately,” Treasury Secretary Steven Mnuchin earlier told reporters at the White House.

“I think it’s clear we don’t need to send people who make a million dollars a year checks. But we like — that’s one of the ideas we like. We’re going to preview that today and then we’ll be talking about details afterwards,” Mnuchin said.

From a technical standpoint, it is now assessed the market bears will continue to weigh on the support even though the technical assessment is deep into oversold conditions.

With the US$0.6000 target breached now exposes the region of 2003 of US$0.5600- US$0.5800.

Due to the high volatility, the resistance is located at US$0.6165-85, with the immediate resistance located from US$0.6060-75.

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