Daily Currency Update

AUD - Australian Dollar

The Australian dollar fell 3.7% overnight against the Greenback reaching a low of 0.6230, its lowest since March 2009, after the coronavirus was declared a pandemic and US equity markets plunged overnight. Prime Minister Scott Morrison is due to deliver details of his governments more than $10 billion stimulus package on Thursday morning. The Australian dollar continues to be hit hardest by the market’s risk-aversion. With the outbreak now being called a pandemic, fears of its impact on the global economy are rising. This is keeping the Australian dollar among the market’s least-appealing major currencies.

Looking ahead today and there are no scheduled releases. From a technical perspective, the AUD/USD pair is currently trading at 0.6230. We continue to expect support to hold on moves approaching 0.6000 while now any upward push will likely meet resistance around 0.7200.

Key Movers

Financial markets are in turmoil, as containment measures to stop the spread of Coronavirus look increasingly likely to send the global economy into a recession and potentially trigger a credit crisis. Trading was suspended again overnight as Wall Street has suffered its worst day since the stock market crashed on Black Monday in 1987. On Thursday, the S&P 500 closed down about 9.5 percent, its biggest daily drop in more than three decades. The decline has left stocks in the US firmly in a bear market — a term that signifies a decline of 20 percent from the most recent highs. European stocks tumbled 8 per cent, even after the European Central Bank pledged to buy more bonds and offer more help for the economy. Many analysts say markets will continue to swing sharply until the number of new infections stops accelerating.

Expected Ranges