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  • AUD/USD bears catch a breath after consecutive seven days of declines.
  • Aussie PM announced further warnings, RBA infuses liquidity.
  • Fed’s salvo continues with a short-term credit line for primary dealers being the latest weapon.
  • S&P anticipates half Asia-Pacific growth during 2020, Aussie Retail Sales (preliminary) registered surprise jump.

Despite snapping seven-day losing streak, AUD/USD fails to register noticeable recovery while taking rounds to 0.6000 during the Asian session on Wednesday.

The Aussie PM Scott Morrison warned Australian citizens to not travel abroad while also to avoid large gatherings as declaring human biosecurity emergency during the early session. The national leader also said that the RBA is involved in taking economic measures against the pandemic.

Following the news, RBA announced 10.7 billion Australian dollars worth of liquidity infusion via repo actions.

On the economic front, the preliminary readings of February month Aussie Retail Sales reversed the prior -0.3% figures with a +0.4% mark. However, the final readings, to be out on April 08, will decide the game.

Elsewhere, the US Fed announced short-term credit to primary dealers during early Asia. The risk-tone also cheered Joe Biden’s victory in the Florida Democratic Primary but news that the deadly virus is now present in all of the 50 states and DC in the US questioned the trade sentiment. Furthermore, S&P Global Ratings said Asia-Pacific growth will halve during 2020, due to the disease.

That said, the US 10-year treasury yields lose early-day gains to stay near 1.00% while stocks in Australia turn 4.6% minus with those in Japan gaining 1.5% by the press time.

It’s worth mentioning that the pair earlier dropped to the fresh lows since late-2009 as the US dollar registered broad strength after policymakers from the world’s largest economy took harsh steps to ward off the negative implications of the coronavirus (COVID-19).

Given the lack of major data on the calendar, coupled with more focus on the global measures to fight against the epidemic, market-players will pay more attention to the qualitative data.

Technical Analysis

Even if sustained trading above 0.6000 can trigger the pair’s pullback moves to 0.6080 and 0.6100, buyers are less likely to be convinced unless breaking 0.6330 mark comprising the weekly top.