25.03.2020 AUD/USD Daily Analysis

25.03.2020 AUD/USD Daily Analysis

AUD/USD extends the rebound from earlier this week amid the wave of new measures announced by the Federal Reserve, and the exchange rate looks poised for a larger recovery as the Relative Strength Index (RSI) displays a textbook buy signal. The Aussie can be influenced by several macroeconomic factors, such as the Reserve Bank of Australia (RBA) raising or lowering interest rates, GDP, employment figures, trade balance and inflation data. Rhetoric/comments from Australia’s central bank officials can also have a significant impact on the Aussie. The AUD/USD also tends to have a higher beta and is, therefore, more sensitive to rising or falling equity and commodity prices compared to other crosses. Consequently, traders will want to keep a close eye on the S&P500 in the US as well as the prices of gold and copper as they have a high positive correlation with AUD/USD.