The Australian Dollar, the world’s prime risk currency due to the country’s commodities exports was knocked down to its weakest level since February 2003 to 0.5959 overnight. The Battler has lost 10% since March 9. Following the Trump administration’s signal of its stimulus bazooka and the Fed efforts to address funding shortages, all eyes will be on the RBA and Scott Morrison’s government actions to further counter the negative effects of Covid-19 on the economy.
The Australian Dollar also fell to multi-week and month lows against other major currencies. The RBA’s Trade Weighted Index (TWI) fell under the 60.00 level for the first time since 2008. RBA Governor Philip Lowe will take this into consideration in his speech in Sydney tomorrow.
AUD/USD has good and immediate support at 0.5980 followed by 0.5950. Immediate resistance can be found at 0.6030 and 0.6080. Look for a choppy start with a likely 0.5985-0.6125 range today. Prefer to buy dips at current levels where the Battler is at attractive buying levels.