AUD/USD Outlook (04 February 2020)

Overall, AUD/USD is trending downwards. Recently, AUD/USD bounced off the support level of 0.66800 after the Reserve Bank of Australia (RBA) kept interest rate unchanged at 0.75%.
The RBA mentioned in the rate statement that the reduction in interest rate in 2019 is “supporting employment and income growth in Australia and a return of inflation to the medium-term target range”. Also, the low interest rate has applied downward pressure on the exchange rate, which in turn supports activity across a range of industries. The RBA sees that the interest rate has been “reduced to a very low level” and decided to hold interest rate unchanged to allow more time to the transmission of monetary policy.
Also, the RBA recognizes that the spreading of the coronavirus is having a significant effect on the Chinese economy but is “too early to determine how long-lasting the impact will be”.
RBA Governor Phillip Lowe will be delivering a speech tomorrow at 0930 (SGT). Volatility is expected during this time.
AUD/USD’s next support level is at 0.66800 and the next resistance level is at 0.68500.
Look for short-term buying opportunities of AUD/USD.