The Aussie Battler got knocked down hard from the tsunami that hit financial markets with risk and Emerging Market currencies slumping. AUD/USD plunged to 0.6213, November 2008 lows amid the risk aversion triggered by President Trump’s inability to live up to his “major economic response” to the coronavirus in the United States. The ECB’s action plan to battle COVID-19 is seen as modest and not enough. Risk assets sank, taking the Australian Dollar along with it.
Australian Prime Minister Scott Morrison announced an AUD 17.6 billon coronavirus stimulus package yesterday. Traders shrugged this aside. FX will continue to pay close attention to pandemic headlines with little in the way of economic data and events released today. Which will keep the Aussie heavy. That said, often in volatile conditions, the Battler has always felt heaviest when it is forming a short-term low.
AUD/USD has immediate support at 0.6250 followed by 0.6210. Immediate resistance can be found at 0.6340 followed by 0.6380. Tin helmets on, its going to be a choppy ride. Stay nimble, keep an open mind, fix your levels firmly and get ready to rumble. Likely range today 0.6240-0.6380.
