- The Australian dollar declined, hovering towards an 11-year low hit in the previous session, as investors struggled to assess the economic damage caused by the coronavirus.
- The number of people infected with the virus touched 111,600 across the world as the outbreak reached more countries.
- The major is likely to remain on the downside as investors digested Chinese downbeat CPI growth figures and worse than expected PPI in February.
- China's Producer Price Index fell by 0.4 percent year-on-year in February, down from the previous month's 0.1 percent reading, while the Consumer Price Index rose 5.2 percent as expected, following January's 5.4 percent rise.
- Crude oil prices stabilised after the previous day’s slump, but markets brace for a price war between Saudi Arabia and Russia.
- The Aussie was trading 0.3 percent down at 0.6561, having hit a low of 0.6314 on Monday, it’s lowest since March 2009.
- Technical indicators are bearish: RSI weak at 38, Stochs are biased lower and MACD supports downside.
- Immediate resistance is located at 0.6634 (21-DMA), a break above could take it near 0.6694.
- On the downside, support is seen at 0.6519 (61.8% retracement of 0.6433 and 0.6657), a break below could drag it till 0.6481 (78.6% retracement).
Recommendation: Good to sell on rallies around 0.6577, with stop loss of 0.6633 and target price of 0.6519.
