The Australian dollar fell to the lowest since Oct 2002 on Thursday after central bank of Australia cut interest rate to record low at 0.25%.
The Aussie was down over 15% vs its US counterpart in less that two weeks, as corona virus pandemic hit hardly global economy, with China, as the first victim of virus, showing strong economic slowdown and traders rushed to buy safe-haven US dollar.
Optimistic tones come from world central bank coordinated action in massive asset buying in attempts to prevent the collapse of the global economy, may slow current steep fall.
Meanwhile, the markets are assessing the measures which need calm global panic mood and stabilize the situation.
The pair is consolidating above new low at 0.5509, with deeply oversold studies suggesting some profit-taking.
Upticks are expected to provide better selling opportunities while capped under psychological 0.60 barrier (also former low of Sep 2008). Only sustained break here would sideline bears and signal stronger correction.
Res: 0.5815; 0.5958; 0.6000; 0.6097
Sup: 0.5680; 0.5600; 0.5509; 0.5228
