The Australian dollar rose above 0.65 handle again on Wednesday, following dip to 0.6432 previous day after China announced partial ban on beef imports from Australia.
Aussie was inflated by weaker US dollar on speculations that the Fed may adopt negative interest rates and also surged to six-month high vs Kiwi dollar after RBNZ announced an increase in bond-buying and hinted negative rates.
Fresh advance focuses strong barrier at 0.6525 (falling 100DMA) which marks the upper boundary of for-day congestion between 100DMA at the upside and 10DMA (0.6466) at the downside.
Both limits have been cracked but so far without clear break, leaving the near-term action within narrow range, awaiting fresh direction signals.
Daily studies are still mixed and traders focus on today’s speech of Fed chairman Jerome Powell who is expected to give clearer signals whether the US central bank will introduce negative interest rates or not.
The Aussie may come under increased pressure if Powell sidelines negative rates story, but could accelerate higher if the central bank opts to introduce sub-zero rates in attempts to cushion strong negative impact to the economy from pandemic lockdown.
Res: 0.6525, 0.6569, 0.6612, 0.6667
Sup: 0.6466, 0.6450, 0.6432, 0.6378
