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AUD/USD plunged to fresh five and half year lows after the Reserve Bank of Australia (RBA) slashed its official cash rate (OCR) by 25 bps from 2.50% to record low of 2.25%.
Down from 0.7800 levels
Currently, the AUD/USD collapsed -1.72% and trades at fresh multi year lows of 0.7666 levels post the RBA announcement. The Aussie fell as RBA joined the easing club by slashing key rates and maintained a dovish tone citing soft growth and weak inflation, and noted, "at today's meeting, taking into account the flow of recent information and updated forecasts, the Board judged that, on balance, a further reduction in the cash rate was appropriate." "A lower exchange rate is likely to be needed to achieve balanced growth in the economy."
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7800 levels, above which gains could be extended to 0.7833 levels. On the flip side, support is seen at 0.7650 from here it to 0.7600 levels
Down from 0.7800 levels
Currently, the AUD/USD collapsed -1.72% and trades at fresh multi year lows of 0.7666 levels post the RBA announcement. The Aussie fell as RBA joined the easing club by slashing key rates and maintained a dovish tone citing soft growth and weak inflation, and noted, "at today's meeting, taking into account the flow of recent information and updated forecasts, the Board judged that, on balance, a further reduction in the cash rate was appropriate." "A lower exchange rate is likely to be needed to achieve balanced growth in the economy."
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7800 levels, above which gains could be extended to 0.7833 levels. On the flip side, support is seen at 0.7650 from here it to 0.7600 levels
