We can continue to expect high volatility between 0.55 cents and 0.60 cents. The Australian Battler came back strongly after hitting 2002 lows last week at 0.55062. Following Prime Minister Scott Morrison’s announcement of a nationwide application of tough new social distancing rules, the government also announced its second stimulus package of AUD 66 billion, which brings to total stimulus effort to AUD 189 billion. According the Australian Business Insider, this is about 10% of the country’s GDP.
Australia’s efforts to battle the virus outbreak include the possibility of mobilising the hotel industry to fill shortages of medical equipment should the country run out of intensive care wards. According to the Sydney Morning Herald, major hotels are set to become quarantine zones and even hospital wards under an emergency plan. These proactive efforts will feed in to support the beleaguered Aussie Battler, which is due for a sharp rebound.
AUD/USD has immediate resistance at 0.5965 and 0.60 cents. The Aussie would need to break out above 0.60 cents to get back to a 0.60-0.65 cent range. Immediate support lies at 0.5700 followed by 0.5630 and 0.5530. Look for a volatile trading session between 0.5670-0.5930. Prefer to buy dips.