For the 24 hours to 23:00 GMT, AUD weakened 0.82% against the USD to close at 1.0333, after the Reserve Bank of Australia (RBA) slashed the key interest rate by 50 basis points to 3.75% from 4.25%. The rate cut was larger than expected by analysts who were looking for a reduction of 25 basis points.
Additionally, RBA Governor, Glenn Stevens, indicated that the decision was based on the policy board’s view that economic conditions have been somewhat weaker-than-expected, while inflation has moderated.
In the Asian session, at GMT0300, the pair is trading at 1.0342, with the AUD trading 0.09% higher from yesterday’s close.
LME Copper prices traded flat at $8,527.5/ MT. Aluminium prices rose 0.4% or $9.0/MT to $2,066.5/ MT.
The pair is expected to find support at 1.0292, and a fall through could take it to the next support level of 1.0241. The pair is expected to find its first resistance at 1.0407, and a rise through could take it to the next resistance level of 1.0471.
Trading trends in the pair today are expected to be determined by release of AiG performance of services index in Australia.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.