|Day's range||0.599 - 0.605|
|52-week range||0.5520 - 0.7206|
The rout in the financial markets and near-certain global recession caused by the coronavirus pandemic, fueled a run on demand for the highly liquid U.S. Dollar.
While it is a shortened week, with economic data on the lighter side, there is still plenty for the markets to focus on and OPEC and COVID-19 in particular.
The Australian dollar has initially tried to rally during the week but then broke down again as the 0.60 level looks very likely to act as a bit of a magnet for price.
The Australian dollar initially tried to rally during the trading session on Friday, but then broke towards the crucial 0.60 level. At this point in time, I believe that the market is going to continue to see the Australian dollar asked questions of the global economy.
Based on the early price action and the current price at .6072, the direction of the AUD/USD the rest of the session on Friday is likely to be determined by trader reaction to the resistance cluster at .6093 to .6098.
Nonfarm payrolls and service sector PMIs are in focus today. With the West in shutdown mode, both labor market numbers and PMIs are expected to be dire…
The Australian dollar initially tried to rally during the trading session on Thursday but gave back the gains to show signs of extreme negativity. At this point, the 0.60 level is trying to offer support, but given enough time it looks as if we will probably break through there.
Based on the early price action and the current price at .6108, the direction of the AUD/USD the rest of the session on Thursday is likely to be determined by trader reaction to the main 50% level at .6098.
Early Wednesday, the Reserve Bank of Australia (RBA) said in its emergency meeting minutes that policymakers were worried about the potential for a “very material contraction” in economic activity.
We strongly believe China wants to show some strength in their perceived economic recovery and that these PMI numbers are somewhat “manufactured for effect”.
The Australian dollar initially tried to rally during the trading session on Wednesday but have fallen directly from there to reach down towards the 0.60 region. This is an area that should offer a bit of support, but if it gives way, look out below.
The Global economy is experiencing unprecedented disruptions, and while the full effects of these disruptions are not yet evident, it is clear that the economy is experiencing the most abrupt and severe contraction since the Great Depression.
A busy economic calendar may not be enough to distract the markets. The virus continues to spread at a sharp pace in spite of lockdown measures…
The near-term direction of the AUD/US will be determined by trader reaction to the 50% level at .6097 and the Fibonacci level at .6236.
The Australian dollar initially tried to rally during the trading session on Tuesday but gave back the gains early, breaking down below the bottom of the candlestick from the previous session turning it into a “hanging man.”
PMI numbers out of China impress early. Will a busy economic calendar be enough to distract the markets from the continued spread of COVID-19?
The Australian dollar has gone back and forth during the trading session on Monday to kick off the week on a back foot. Ultimately, this is a market that looks a little bit exhausted.
Market volatility doesn’t appear to be going anywhere and that’s not going to change until the spread of the coronavirus slows and slows materially.
Based on the early price action and the current price at .6153, the direction of the AUD/USD the rest of the session on Monday is likely to be determined by trader reaction to a pair of Gann angles at .6085 to .6070.
The RBA injected $6.9 billion into the financial system last week and said it would buy $4 billion in government bonds. The Reserve Bank of New Zealand (RBNZ) made its first foray into so-called quantitative easing with the purchase of NZ$250 million of government bonds in the secondary market.