AUD/USD – On the Backfoot Amid COVID-19 Woes, Look to Trade 0.64-0.66

The Australian Dollar struggled to maintain its head above 0.6500 cents as the US Dollar rallied and the country battled the spread of the coronavirus within. AUD/USD traded in its own volatile fashion between 0.64554 and 0.65394 before settling to finish at 0.6490. The Aussie Battler opens at 0.6485 in Sydney. The Australian Business Insider reported this morning that confirmed cases of COVD-19 have risen to 128 with the majority in New South Wales, the most populated state at 77. Australian Prime Minister Scott Morrison announced yesterday that the government committed AUD 2.4 billion for the healthcare system. Which is separate to the official Australian government’s upcoming stimulus effort.

AUD USD Chart - 4 H - IG Markets - 12 March 2020
AUD USD Chart – 4 H – IG Markets – 12 March 2020

The Aussie looks like the Battler is in for a 0.64-0.66 range with both sides generating interest. In between those two pivot points, expect volatility. A lot of A$ can be generated trading this range Happy days! AUD/USD has immediate support at 0.6450 followed by 0.6420. Immediate resistance can be found at 0.6540 and 0.6490. Market positioning and the outlook for a generally weaker US Dollar suggests a buy on dips mentality. Be prepared to trade both sides of that range for now.

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