AUD/USD hits fresh 17-year lows near 0.5800
- Aussie unable to find support, drops to near 0.5800.
- Greenback rises further as markets remain in panic mode.
The AUD/USD pair continued to decline during the American session as the rally of the US dollar persisted and reached a fresh seventeen-year low at 0.5812. As of writing, was trading at 0.5835, modestly off low, still under pressure.
Risk aversion boosted the demand for the greenback as investors continued to rush for liquidity. The US Dollar Index (DXY) broke above 101.00 to the highest in three years. It was holding at the top, as equity prices in the US dropped further.
The Dow Jones was falling 6.55% and crude oil more than 15%. The WTI was near $22.00, in levels last seen back in 2003. Markets remained in panic mode unable to find some calm despite liquidity and fiscal stimulus announced across the globe.
Volatility is set to prevail at extreme levels. The AUD/USD was down almost two hundred pips on Wednesday. The next main support is the 0.5800 area, while on the upside, resistance might be seen at 0.5960 (March 17 low).