The Aussie updated another low. Overview for 19.03.2020

AUDUSD is falling towards its all-time lows after the RBA’s decision to cut the rate again. 

The Australian Dollar is plummeting against the USD. The current quote for the instrument is 0.5637.

The Aussie wasn’t so cheap even during the financial crisis in 2008.

Today, the Reserve Bank of Australia decided to cut the benchmark rate for the second time this month. The current value is 0.25%, which is the all-time low. At the same time, the regulator targeted the yield on 3-year Government bonds of around 0.25%. In the comments, the RBA said that the country’s financial system was stable and had enough strengths to fight the coronavirus and its consequences. The regulator guaranteed that financial markets would continue operating efficiently and that it would adhere to the strategy of containing the virus’s negative effects. 

Since the beginning of 2020, the Australian currency lost 27.3% against the USD, which is a pretty serious devaluation. 

What’s next? Most likely, the Australian economy may keep the balance thanks to low rates and diversified economic model but later the country will have to revise its trade relations. Still, it might be те necessary in a few months, provided that the Chinese economy starts to gain its lost momentum.