AUDUSD Rebound On Improved Sentiment, Bulls Target 0.61

AUDUSD trading higher boosted by optimism as the coronavirus new cases and deaths drop for the third consecutive session in Europe. Australia Inflation rose to 0.2% from previous -0.1% in March; the yearly Inflation figure came down to 1.5% in March from the previous 1.6%. Meanwhile, Fitch credit agency warned that Australia’s public finances would weaken amid the coronavirus outbreak.

Aussie dollar also capitalizes the stronger than expected Chinese manufacturing PMI reported the previous week. Reserve Bank of Australia announced last week that it would buy government bonds up to two billion with maturities from 2026 to June 2030, while analysts expect the RBA will keep rates unchanged at tomorrow’s monetary policy meeting.

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AUDUSD Technical Evaluation

AUDUSD is 1.20% higher at 0.6066 as the pair recover almost all of Friday’s losses. The technical picture for AUDUSD remains bearish for the long term as the oair trades below all the major daily moving averages. A settlement above 0.62 might improve the outlook and would cancel the negative trend.

On the upside, first resistance for AUDUSD stands at 0.6075 the daily high. Above that resistance level more offers would be met at 0.6119 the high from April 2. The next supply zone for AUDUSD pair would be reached at 0.6184 the high from April 1st.

On the flip side,  initial support for the pair will be met at 0.5991 the daily low, while a break below might test 0.6022 the low from March 27. In case of a move lower the next support area stands at 0.5864 the low from March 26. If selling pressure persists below that level the next target stands at 0.5704 the low from March 23.

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