AUD/USD: Buyers cheer Fed rate cut by piercing 0.6300

• AUD/USD snaps five-day losing streak after the Fed’s surprise move.
• The Fed slashes rate to zero, announces QE.
• Co-ordinated moves by RBNZ/Fed offered the week-start boost to the markets.

AUD/USD pierces 0.6300, following the week-start Asian opening around 0.6145, after the Fed surprised global markets by the rate cut and QE before few minutes.

The US Federal Reserve slashed benchmark interest rates to 0.25% and announced $700 billion worth of Quantitative Easing (QE) to bolster the fight against coronavirus (COVID-19).

The news dragged the US dollar down against most of its counterparts whereas offering a boost to the risk.

Read: Breaking: Fed slashes rates to zero

On Friday, US President Donald Trump announced a national emergency and took a few more steps to conquer the pandemic. The news suggests that the Republican leader talked to various grocery leaders during the weekend to make sure the routine life of the US citizens remains intact amid the crisis.

Read: What you need to know for markets opening: Europe on lock-down, risk-off firmly back on the agenda

The Fed Chairman Jerome Powell is up for speaking at 22:00 GMT and may offer additional insights into the central bank’s moves. While the recent action has cut down on the expectations of any major moves during this week’s Fed meeting, odds for which suggested 100 basis points of a rate cut, investors will be on the lookout for clues concerning the future moves.

Technical Levels