The Australian Dollar plummeted anew against the broad-based US Dollar advance, falling commodity prices, and soft Emerging Market currencies. AUD/USD hit fresh 2003 lows at 0.57018 before bouncing to close at 0.5800 in late New York trade. The Aussie Battler eased in early Sydney to its current 0.5790 level.
Traders will keep their eyes on the Australian Employment report for February (11.30 am Sydney) ahead of the RBA rate decision (2.30 pm Sydney). The Australian economy is expected to have created 10,000 jobs in February from January’s 13,000. The Unemployment rate is expected to remain unchanged at 5.3%. RBA Governor Philip Lowe speaks to the press in Sydney following the meeting at 4.00 pm. The RBA is expected to announce further measures to counter the deadly Covid-19.
Traders have 2003 low around 0.5670 as the next target for the Battler. Immediate support ahead of that lies at 0.5760 followed by 0.5710. Immediate resistance can be found at 0.5830 and 0.5880. While the Aussie remains heavy, bear in mind that we are near or at multi-year lows in the AUD/USD and AUD Trade Weighted Index. For this writer, it is dangerous to get short down here. Look to trade a likely range today of 0.5730-0.5880. Tin helmets on, trade the range but don’t stay short for long.