AUD Has Gain Rallying Momentum

AUD/USD closed up 1.5% on Monday, being the daily best performer of major currencies.

The pair’s rise yesterday was mainly driven by Aussie dollar’s strong momentum and the weakening US dollar, likely reflecting declining fears against the coronavirus outbreak that has recently shown signs of changing for the better. After news came that hospitalization rate and death rate are falling in the most heavily hit Italy and New York, a constant recovery of market optimism may increase market volatility retracement and further push up AUD/USD.

Aussie dollar often soars with risk appetite, while US dollar, as a safe haven, perform better when risk aversion prevails the market. Investors should also focus on RBA’s policy meeting decision in April.

AUD/USD daily pivot points: 0.6050--0.6070

S1: 0.6013 R1: 0.6129

S2: 0.5945 R2: 0.6175