- Summary:
- AUDUSD trades higher for the fourth consecutive session as the risk appetite returns to market and some profit-taking on USD. The pair entered a short term
Asian stocks trading higher after the Bank of Japan (BOJ) removed the limits of its Japanese Government Bonds and increased the purchases of corporate debt. The BOJ also cut the 2020 GDP forecast to -5% and predicts weak inflation at 0.4% well below the inflation target of 2%.
On the other hand, China’s Industrial Profits for March dropped, almost 35.00%, but investors ignored the data as stocks in China gain close to 1.% higher.
In the USA the death toll from coronavirus surpassed 50,000 and some states like Georgia planning to reopen some small businesses on Friday. In Europe, the 27 leaders agreed on a trillion euro relief package but failed to reach an agreement over if this will be a grant or just loans.
Nikkei 225 finished 2.82% higher at 19,806. The Singapore Straits Times is 1.52% higher at 2,556. The Shanghai Composite is 0.69% higher at 2,828, while the Hang Seng Index is 1.96% higher at 24,302. The Aussie ASX 200 index ended flat for the second day at 5,217.
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AUDUSD Bullish Momentum Above 50-day MA
AUDUSD trades higher for the fourth consecutive session as the risk appetite returns to market and some profit-taking on USD. The pair entered a short term bullish momentum after the previous week managed to break above the 50-day moving average. AUDYUSD gained over 18% since the March lows.
On the upside, the first resistance for AUDUSD stands at 0.6468 the daily high. Above the 0.6768 resistance level, the next target will be at 0.6535 the high from March 11. More selling pressure would emerge at 0.6574 the 100-day moving average.
On the other hand, initial support for the AUDUSD pair stands at 0.6382 the daily low. Next crucial support for the AUDUSD pair will be met at 0.66338 the low from Friday’s trading session. A break below might test the critical 50-day moving average support at 0.6309.