The market’s risk-off stance impacted the Australian Dollar heavily and the currency plunged to a fresh November 2008 low at 0.60785. The Aussie was also under pressure against its other rivals. AUD/JPY dropped 2.4% to 65.05 while the AUD/NZD cross hit 1.00210, January 2015 lows. AUD/USD closed at 0.6115, down 1.05% from 0.6183 yesterday.
Traders will keep their eye on today’s RBA Monetary Policy Meeting Minutes for March. The focus on the minutes will be on any Quantitative Easing rather than an interest cut. If the RBA do expand their balance sheet, this will be the first time ever that the RBA would implement QE.
Chief CBA economist Gareth Aird said on the Australian Business Insider he expects the RBA to cut the cash rate to 0.25% on Thursday.
The RBA will be vigilant with the Australian Dollar Trade Weighted Index at its lowest since the 2008 financial crisis.
AUSD/USD has immediate support at 0.6075 followed by 0.6035 and then 0.6000. Immediate resistance can be found at 0.6160 and 0.6210. Look for a choppy trading session today between 0.6080-0.6210. Look to buy dips, a lower US Dollar will mean a higher Australian Dollar in time.