AUD/USD battles 0.6000 amid broad USD strength, oil slump

• AUD/USD attempting recovery once again on 0.6000.
• US dollar bulls take a breather before the next push higher.
• Eyes on coronavirus updates, as the focus shifts to RBA decision.

Having kick-started the week on the front foot, AUD/USD is trying once again to extend the bounce from a five-day low of 0.5979. At the time of writing, the spot trades at 0.6000, up 0.10% so far.

RBA: Rate cut, QE – What next?

Despite the uptick to 0.6017 highs, the commodity-currency lacks follow-through amid a sharp drop in oil prices while gold prices also traded mildly lower. Further, the safe-haven demand for the US dollar remains intact, keeping the greenback broadly underpinned.

Meanwhile, US President Trump sounds somewhat upbeat on the virus situation in his country, adding further to the dollar demand. Trump said, in the Task Force briefing, he hopes to see levelling off of coronavirus in the hottest spots. The US currency shrugged-off a loss of 701,00 jobs in the US economy last month due to the virus impact.

Looking ahead, the downside in the major will likely remain capped, as the Reserve Bank of Australia (RBA) is expected to stand pat on its monetary policy decision due on Tuesday after it announced an emergency rate cut and bond-buying program last month. The latest RBA minutes revealed that the board said that there is no appetite for negative interest rates.

AUD/USD technical levels to watch