The AUD/USD prices have exhibited sharp bullish bias during the European and the U.S. session in the wake of stronger Aussie. The AUD/USD pair is currently holding around 0.6609. Meanwhile, the minutes of the Reserve Bank of Australia revealed that the Central Bank admitted that the Australian economy was set to experience a contraction due to coronavirus pandemic. Bank also believed that fiscal and monetary measures would reduce the impact of the virus crisis on the economy.
The Bank held its rates on a 0.25% level in its latest meeting and confirmed its intention to retain a 3-year bond yield of close to 0.25% by increasing government bond purchases.
RBA’s board members projected a 10% contraction in the Australian economy during H1 2020 and an overall decrease of 6% for the whole year. RBA said that the nature of shrinkage would be public health measures, and it would be easy & quick to recover from, in comparison of the contraction caused by financial factors. In the absence of any economic data from Australia, USD movement and updates about US-China & US-Australia relations drove this pair.
The technical outlook of the AUD/USD prices has violated 0.6563 resistance level, and bullish trend continuation can extend buying until 0.6688 level. The EMA and MACD are supporting an upward trend in the market, and these may lead Aussie further higher today.
Entry Price – Buy 0.65804
Stop Loss – 0.65207
Take Profit – 0.66404
Risk to Reward – 1.00
Profit & Loss Per Standard Lot = -$600/ +$600
Profit & Loss Per Micro Lot = -$60/ +$60