The Australian dollar rebounded from a near 11-year trough as investors raised bets that the growing fallout from the coronavirus outbreak would prompt U.S. interest rate cuts. China reported another rise in new coronavi…
The Australian dollar rebounded from a near 11-year trough as investors raised bets that the growing fallout from the coronavirus outbreak would prompt U.S. interest rate cuts.
China reported another rise in new coronavirus infections on Tuesday, with 508 compared to 409 a day earlier. Money markets now price in a Federal Reserve interest rate cut of 25 basis points in June.
The Aussie was trading 0.2 percent up at 0.6614, having hit a low of 0.6584 on Monday, its lowest since March 2009.
Technical indicators are bearish: RSI weak at 29, Stochs are at oversold levels and MACD supports downside.
Immediate resistance is located at 0.6624 (23.6% retracement of 0.6750 and 0.6584), a break above could take it near 0.6648 (38.2% retracement).
On the downside, support is seen at 0.6565, a break below could drag it till 0.6527.
