- Summary:
- AUDUSD is leading gains among the major currency pairs today following the G20 meeting and a promise of more aid from the Australian government.
AUDUSD is trading higher in today’s Asian session, following an announcement from G20 leaders and more fiscal stimulus from Australia. As of this writing, the currency pair is leading gains among the majors. It is up by 0.57% or 35 pips, just below the 0.6100 handle.
Earlier today, the G20 leaders pledged to do everything they could to stop the coronavirus pandemic. On top of that, they promised to inject liquidity and limit income losses. Following this statement, Australian Prime Minister Scott Morrision announced that the government is preparing another tranche of aid. Currently, Australia’s relief proposals are around $189 billion AUD. This involves direct payments to citizens as well as subsidized loans and relief from insolvency. More details on the government’s third tranche of aid should be made available over the weekend.
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AUDUSD Outlook
On the hourly time frame, it can be seen that AUDUSD still has room to trade lower and still maintain its uptrend. By connecting the lows of March 20, March 23, and March 26, there is trend line support around 0.5966. This price also coincides with the 61.8% Fib level (when drawing the Fibonacci retracement tool from yesterday’s low to today’s high). Additionally, the 100 SMA and 200 SMA also seem to align at this price. If buyers lose their momentum, we could expect the currency pair to fall along this price level.
Conversely, if the bullish momentum is sustained, AUDUSD could rally to 0.6475. This price coincides with the falling trend line on the daily time frame when connecting the highs of December 31, January 16, and March 6.