FxWirePro: Aussie consolidates above 0.6600 as coronavirus cases spark pandemic worries
Tuesday, February 25, 2020 8:05 AM UTC
- 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.