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Session Recap: AUD/USD breaks below 1.02 as RBA cut rates to record low 2.75%

FXstreet.com (Barcelona) - A quiet Asian session in mostly all fronts but in Aussie after the RBA has lowered interest rates from previous 3% to record lows at 2.75%, the lowest since year 1959. Japan opened doors after a 4-day weekend, with USD/JPY momentarily breaking below the 99 handle on Japan Fin Min comments.

Nikkei index opened above the 14k points mark for first time since late June 2008, playing catch up with US equities, adding more than +2.5% gain for the day, while other local share markets traded mixed with small moves either way. Gold and Oil both slided slightly to the downside, last at $1465 for gold spot, while Oil is around the $95.30 mark.

Apart from the RBA, AiG construction index in Australia posted a decline from previous 1.4% to 0.4%, the lowest level since year 2009. Australian trade balance came in better than expected at +0.31B on the back of strong exports to China, while HPI came in much worse than expected at +0.1% when a +1.9% increase was expected.

Main healines in the Asian session:

AUD: Big hedge funds selling again in overnight trade

Newswires – North Korea move missiles away from launch site

Forex: EUR/USD remains trapped around 1.3100 despite Draghi's siren calls

Commodities Brief: Precious metals finish slightly lower after narrow range day

New Zealand Labour cost index (QoQ) falls to 0.4% in 1Q from 0.5%

United Kingdom Apr BRC Shop Price Index (MoM) decreases to 0.4% vs 1.4%

Australia AiG Performance of Construction Index falls to 35.2 in Apr from 39

Forex: NZD/USD finishes lower as consolidation on daily chart continues

Forex: AUD/JPY closes lower as resistance at 102.50 continues to hold firm

Japan’s finance minister Aso: It will take a few months for the BOJ easing to take effect

Australia shows trade surplus, but soft house prices

Forex: USD/JPY dips below 99 on Aso's comments

Asian stocks show small loses while Nikkei index wins big

IMF tells Greece to step up fight on tax evasion

RBA cut rates to 2.75, lowest since records began in 1959

AUD/NZD breaks below 1.2000

Forex: Aussie plummets on RBA Interest Rate Decision

Forex: Aussie plummets on RBA Interest Rate Decision

The AUD/USD is currently trading sharply lower, down 65 pips at 1.0188. Initially the pair was trading near the 1.0240 level, but plummeted as the RBA announced an interest rate cut by 0.25% which will take the current cash rate from 3.00% to 2.75%.

According to Sean Lee at FXWW, The rate cut has pushed the AUD/USD back below 1.0200 and I’d expect any rallies to be capped by 1.0230. I’m hearing the initial batch of professional bids are at 1.0165/70."

The FXStreet.com Trend Index now reads slightly bearish on the 1 hour time frame. Initial support can be found at 1.0170 (support on weekly chart), followed by 1.0115 (weekly low from March 4th, 2013). Initial resistance is now located at 1.0220 (previous support, now resistance on daily chart), followed by 1.0244 (the 9dma on 1 hour chart).
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Forex: AUD/NZD cracks 1.20 on outright offers post RBA

Following the unprecedented move by the RBA to cut by another 0.25 bp to now set the official benchmark interest rate at 2.75%, the lowest since records began in June 1959, the AUD/NZD is succumbing below the psychological 1.20 number, reaching a fresh 3 ½ year low at 1.1948.
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