AUD/USD Outlook (19 March 2020)
Overall, AUD/USD is trending downwards. Recently, AUD/USD trended lower, breaking the support level of 0.58800.
Earlier today, the Reserve Bank of Australia (RBA) announced a cut in interest rate by 0.25% (Current: 0.25%, Previous: 0.50%). In addition, the RBA will also be taking up the following measures:
(1) Targeting the yield on 3-year Australian Government Securities (AGS) to be around 0.25% until the full employment and inflation targets are met.
(2) Launching a term funding facility for the banking system with emphasis on small and medium-sized businesses with the purpose of lowering funding costs for the banking
system, leading to a lower cost of credit to households and businesses. This also provide an incentive for lenders to support credit to businesses.
(3) Adjusting the interest rate paid to banks for holding money with RBA from 0% to 10%, thus helping to reduce the costs to the banking system.
AUD/USD’s next support level is at 0.56000 and the next resistance level is at 0.57000.
Look for short-term selling opportunities of AUD/USD.
Earlier today, the Reserve Bank of Australia (RBA) announced a cut in interest rate by 0.25% (Current: 0.25%, Previous: 0.50%). In addition, the RBA will also be taking up the following measures:
(1) Targeting the yield on 3-year Australian Government Securities (AGS) to be around 0.25% until the full employment and inflation targets are met.
(2) Launching a term funding facility for the banking system with emphasis on small and medium-sized businesses with the purpose of lowering funding costs for the banking
system, leading to a lower cost of credit to households and businesses. This also provide an incentive for lenders to support credit to businesses.
(3) Adjusting the interest rate paid to banks for holding money with RBA from 0% to 10%, thus helping to reduce the costs to the banking system.
AUD/USD’s next support level is at 0.56000 and the next resistance level is at 0.57000.
Look for short-term selling opportunities of AUD/USD.