- The Australian dollar rose after Australian PM Morrison announced an A$2.4 bln health package to combat the spread of the coronavirus in the country.
- The health package proposes setting up fever clinics across the country and offer cost-free facilities for people to consult doctors over video calls.
- Earlier in the day, Reserve Bank of Australia Deputy Governor Guy Debelle stated that the full impact of the coronavirus outbreak on Australia’s economy was still uncertain but the combined effect of fiscal and monetary policy would support activity in the meantime.
- The Aussie was trading 0.3 percent up at 0.6523, having hit a low of 0.6314 on Monday, it’s lowest since March 2009.
- Technical indicators are turning bullish on hourly charts: RSI strong at 50, Stochs are biased higher and MACD supports upside.
- Immediate resistance is located at 0.6542, a break above could take it near 0.6627.
- On the downside, support is seen at 0.6480 (78.6% retracement of 0.6433 and 0.6657), a break below could drag it till 0.6433.
Recommendation: Good to buy on dips around 0.6507, with stop loss of 0.6480 and target price of 0.6542.
