- Aussie Dollar moved down vs most major currencies, including the New Zealand Dollar after the RBA interest rate decision
- There was a bullish trend line formed on the hourly chart of AUDNZD, which was broken during the downside move.
- RBA Interest Rate Decision was announced by the Reserve Bank of Australia in which the central bank decided to reduce rates by 0.25% from 2% to 1.75%.
- The market was not expecting any rate cut, so it surprised traders and pushed the AUD down.
The Aussie Dollar tumbled against the US Dollar and the New Zealand dollar during the past two sessions, and the RBA rate cut was the main reason. There was a bullish trend line formed on the hourly chart of AUDNZD, which cleared by the bears to open the gates for more declines.
The AUDNZD pair traded as low as 1.0790 where it found bids, and currently correcting higher. However, the chances of any further recovery from the current levels are very less, and the pair may resume its downtrend.
Selling may be opted with a stop of around 20 pips with a target of recent low of 1.0790.
RBA Interest Rate Decision
Today, there was a major risk event in Australia, as the RBA Interest Rate Decision was announced by the Reserve Bank of Australia. The forecast was no change in the interest rates from 2%. However, the outcome was surprising, as the RBA decided to reduce rates from 2% to 1.75%.
Commenting on the decision, the report stated “the global economy is continuing to grow, though at a slightly lower pace than earlier expected, with forecasts having been revised down a little further recently. While several advanced economies have recorded improved conditions over the past year, conditions have become more difficult for a number of emerging market economies”.
Overall, the Aussie Dollar may continue to struggle in the short term, and selling might be opted against the NZD.