AUD/USD – Roller Coaster Ride Set to Continue, Base Formed at 0.6120-50

The Aussie Battler survived another attempt to push the AUD/USD toward 0.60 cents on Friday following the US Dollar’s robust rally. AUD/USD plummeted to 0.61231 overnight, settling to close at 0.6185 in New York. The Fed rate cut saw the Battler spike to 0.6305 before easing to settle at its current 0.6185.

Australian Dollar US Dollar 1H Chart - DailyFX - 16 March 2020
Australian Dollar US Dollar 1H Chart – DailyFX – 16 March 2020

Wall Street stock futures collapsed following the Fed easing this morning. The DOW fell 900 points, triggering a limit down. The risk-off response will keep the AUD/USD pair under pressure although this morning the RBA announced that Australia’s financial system is resilient and well placed to deal with the effects of Covid-19.

Immediate support for the Australian Dollar lies between 0.6120-50. The next support comes in at 0.6080. Immediate resistance can be found at 0.6210 and 0.6260. At the end of the day, the softer US Dollar will be the supportive for the Aussie. Look for further volatile trade between 0.6130-0.6330. Prefer to buy dips.

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