FxWirePro: Aussie tumbles below 0.6600 as virus concerns dampen China stimulus
The Australian dollar declined to a fresh near 11-year trough amid fears about the economic damage from China’s coronavirus epidemic that dented Beijing’s stimulus efforts. Moreover, data showing a surprisingly sharp ris…
The Australian dollar declined to a fresh near 11-year trough amid fears about the economic damage from China’s coronavirus epidemic that dented Beijing’s stimulus efforts.
Moreover, data showing a surprisingly sharp rise in unemployment further added to the case for further cuts in interest rates
The Aussie was trading 0.4 percent down at 0.6590, having hit a low of 0.6585 earlier, its lowest since March 2009.
Technical indicators are bearish: RSI weak at 24, Stochs are at oversold levels and MACD supports downside.
Immediate resistance is located at 0.6624 (23.6% retracement of 0.6750 and 0.6585), 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.
