OctaFX | OctaFX Forex Broker
Open trading account

Forex: AUD/NZD cracks 1.20 on outright offers post RBA

FXstreet.com (Barcelona) - 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.

According to Sean Lee, founder at FXWW: "The only reason to buy AUD at the moment is to take profit on existing shorts and I see no reason to consider going long the AUD against any of the other majors."

Technical levels on the upside are seen at 1.20 up to 1.2010, previous support turned resistance, ahead of congestion area at 1.2025/45, an area which seems hard to recover in the near future as RBA/RBNZ monetary policy outlook stands.

On the downside, the 2009 October low at 1.1930/40 provides initial support, however, it is difficult to identify a solid demand area now until 1.16, Oct/Nov 2008 highs. Before that level, which remains far from current levels, 1.1835 - 61.8% fib retrac from the 2008/2011 rally - may provide decent support too.

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

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.
Read more Previous

Switzerland: 1Q SECO Consumer Climate (3m) rises to -5 vs -6 in 4Q

Read more Next
Start livechat