- The Australian dollar surged, extending gains for the third straight session after data showed Australia’s economy expanded by more than expected last quarter.
- Data released earlier in the day showed the economy expanded by 0.5 percent last quarter, recording its 29th consecutive year of growth without a recession.
- Earlier in the week, the Reserve Bank of Australia cut interest rates to an all-time low of 0.5 percent in a bid to shield the economy from the impact of the coronavirus.
- The Aussie was trading 0.3 percent up at 0.6603, having hit a high of 0.6645 on Tuesday, its highest since Feb. 20.
- Technical indicators are bullish on hourly charts: RSI strong at 58, Stochs are biased higher and MACD supports upside.
- Immediate resistance is located at 0.6638, a break above could take it near 0.6676.
- On the downside, support is seen at 0.6568, a break below could drag it till 0.6547 (5-DMA).
Recommendation: Good to buy on dips around 0.6585, with stop loss of 0.6568, and target price of 0.6638.
