The Reserve Bank of Australia cut interest rates for the third month in a row to a historic low level of 1.0% at its monetary policy meeting, as market expected. It is the second time there have been consecutive interest rate cuts since 2012. Since November 2011 there have been 14 rate cuts with the cash rate cut from 4.75%. The Australian economy continues to face challenges as the economy grew by 1.8% in 1Q 2019 the weakest annual growth rate in nine years. The main domestic uncertainty continues to be household consumption while employment growth continues to be strong. The central bank didn’t provide any clues about the next move in interest rates.
AUDUSD initially dropped to daily low at 0.6956 but rebounded almost immediately to daily high at 0.6985 and now that the dust has settled the pair is trading at 0.6980. The pair now will face the important 0.70 resistance and if breached can extend the rebound at 1.7033 the 100 day moving average. On the downside first support stands at 0.6957 the 50 day moving average which tested successfully today, while more bids will emerge at 0.6827 the low from June 18th.Don’t miss a beat! Follow us on Twitter.