The Aussie was heavily and negatively impacted by the Coronavirus outbreak which has sent the price tumbling for the entire January.
The RBA has been cutting interest rate in order to revive its economic growth since late 2011, from above 4% to only 0.75%.
However, inflation continued to remain subdued and yet another major event, the Coronavirus, hit the Australia economy in the face.
Since inflation has somewhere picked up in 2019 and getting very close to RBA's 2% inflation target, it is understandable that RBA will keep its rate unchanged, also given the fact that the central bank has cut rate thrice in 2019.
And since AUDUSD has weakened so much for the entire January, that really helps RBA to hold back from another rate cut so soon.
This week, we may expect some rebound from the current demand zone around 0.6680.
If price rebounded off and pulls back, look for selling opportunity again at 0.6750.
If the price proceeded to break the 3-month demand zone, then we will just have to wait for a pullback to sell.
Bottom line is that don't just jump in and chase the trend right away.
The RBA has been cutting interest rate in order to revive its economic growth since late 2011, from above 4% to only 0.75%.
However, inflation continued to remain subdued and yet another major event, the Coronavirus, hit the Australia economy in the face.
Since inflation has somewhere picked up in 2019 and getting very close to RBA's 2% inflation target, it is understandable that RBA will keep its rate unchanged, also given the fact that the central bank has cut rate thrice in 2019.
And since AUDUSD has weakened so much for the entire January, that really helps RBA to hold back from another rate cut so soon.
This week, we may expect some rebound from the current demand zone around 0.6680.
If price rebounded off and pulls back, look for selling opportunity again at 0.6750.
If the price proceeded to break the 3-month demand zone, then we will just have to wait for a pullback to sell.
Bottom line is that don't just jump in and chase the trend right away.