Aussie trades below 0.60 level for the first time since 2003
The Aussie dollar extended weakness on Tuesday and cracked psychological 0.60 support, hitting the lowest levels in 17 years.
Rising demand for safe-haven greenback and China’s economy being badly hit by corona virus outbreak are the key drivers of Australian currency.
The sentiment remains extremely weak and keeping bears firmly in play, although markets expect some positive impact from the measures the global central banks take in order to prevent collapse of the global economy.
The RBA in its minutes released earlier today stood aside from rate cut for now but showed readiness to increase bond purchase.
Bears may show hesitation to break 0.60 support immediately, with deeply oversold daily studies supporting the idea of brief consolidation preceding fresh weakness, but lacking firmer signals for such action for now.
Break and close below pivotal levels at 0.6007/00 (2008 low / psychological) would open way for stronger bearish acceleration and expose supports at 0.5228 (Aug 2008 low) and another psychological level at 0.50.
Falling 4-hr 10DMA marks resistance at 0.6108, followed by session high at 0.6148.
Res: 0.6261; 0.6300; 0.6326; 0.6390
Sup: 0.6095; 0.6000; 0.5926; 0.5876