The US dollar is slipping against the Australian dollar

The US dollar is slipping against the Australian dollar after a steep plunge for the AUDUSD pair. The pair recently collapsed to its lowest level since the first half of 2003. It’s evident that the pair’s direction is largely bearish considering that the 50-day moving average is well below the 200-day moving average. Although as of writing, the Australian dollar is seen making a recovery courtesy of the latest move of the United States Federal Reserve which weakened the US dollar this week. Still, despite the slight rebound, it’s forecasted that the Aussie will remain on the defensive against the greenback. Just recently, the Reserve Bank of Australia injected about AU$6.9 billion, or approximately $5.92 billion, into the country’s own financial system to help buoy the economy. Meanwhile, the US Fed intensified its rescue plans yesterday, announcing an unlimited bond-buying program, more credit facilities, and a Main Street lending program.