- The Australian dollar consolidated near a 2-week peak hit earlier in the week amid worries about the fast-spreading coronavirus.
- Earlier in the day, Australia’s Treasury Department stated that the coronavirus is expected to ease half a percentage point from first-quarter growth, but that it is not forecasting a recession as yet.
- The threat from the epidemic prompted the RBA to cut interest rates to an all-time low of 0.5 percent this week, while Australian Treasurer Josh Frydenberg flagged an imminent fiscal stimulus given the rapid spread of the coronavirus.
- The Aussie was trading 0.1 percent up at 0.6633, having hit a high of 0.6645 on Tuesday, its highest since Feb. 20.
- Technical indicators are turning bearish: RSI weak at 46.
- 21-EMA continues to acts as major resistance.
- Next resistance is located at 0.6645, a break above could take it near 0.6676.
- On the downside, support is seen at 0.6602, a break below could drag it till 0.6585 (7-EMA).
Recommendation: Good to sell on rallies around 0.6624, with stop loss of 0.6640, and target price of 0.6585.
