- The Australian dollar surged, extending previous session gains as the central bank cut interest rates to record lows aimed at cushioning the economy from the impact of the coronavirus.
- The Reserve Bank of Australia cut the cash rate a quarter-point to a record low of 0.5 percent after its monthly Board meeting and left the door open to further easing.
- The Aussie was trading 0.4 percent up at 0.6560, having hit a low of 0.6433 on Friday, its lowest since March 2009.
- Technical indicators are bullish on hourly charts: RSI strong at 59, Stochs are at overbought levels and MACD supports upside.
- Immediate resistance is located at 0.6585, a break above could take it near 0.6602.
- On the downside, support is seen at 0.6497, a break below could drag it till 0.6481.
Recommendation: Good to buy on dips around 0.6542, with stop loss of 0.6524 and target price of 0.6585.
