AUD/USD stays below 0.6200 as the central bankers surprise markets

• AUD/USD drops back to sub-0.6200 on Fed Chair’s presser.
• RBA cheers the Aussie financial system.
• Fed/RBNZ announced surprise rate cuts but the respective central bankers refrain from further moves.

Having gradually risen to 0.6220 from 0.6100 ahead of a few minutes, AUD/USD drops to 0.6180 amid the initial Asian session trading on Monday. The pair seems to take clues from the Fed Chair’s presser as well as RBA comments off-late. The RBA keeps praising the national financial system while providing fewer clues for the future moves.

Read: RBA: Australia's financial system is resilient and well placed to fight coronavirus

Following a surprise rate cut, second in the month, to 0.25% as well as $700 billion worth of a Quantitative Easing (QE), the Federal Reserve Chairman turns down the odd of any FOMC meeting during this week. Earlier, markets were anticipating a 100 basis points cut into the Fed rate.

Read: Breaking: Powell speech: Coronavirus is having a profound effect on US and around the world

Not only the Fed but RBNZ also played its role and joined the league of central bankers announcing rate cuts/QE to ward off the negative implications of the coronavirus (COVID-19).

The risk-tone remains under pressure with S&P 500 Futures down 3.77% to 2,5555 by the press time.

Investors will keep eyes on the co-ordinated central bank moves, coronavirus headlines for fresh impulse. Unless there is good news on the part of the pandemic, a remedy or something, markets are likely to remain volatile while portraying the risk aversion.

Technical Levels