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Forex

Australian dollar falls sharply after RBA rate cut

OctaFx | Apr. 16, 2019
Australian dollar falls sharply after RBA rate cut

April 16, OctaFX – The Australian dollar weakened sharply against the USD after the Reserve Bank of Australia (RBA) released meeting minutes.

The minutes showed that officials were considering a rate cut if inflation did not move higher and unemployment rose. In these circumstances, officials said that a rate cut from the current 1.50% would be necessary. Presently, the unemployment rate is at an eight-year low of 4.9% while inflation is slightly below the 2% target.

AUDUSD technical analysis

The AUDUSD pair declined sharply after the RBA left open the likelihood of a rate cut. The pair reached a low of 0.7138, which was the lowest level since Friday last week. It is also close to the 61.8% Fibonacci Retracement level.

The decline led the RSI to reach the oversold level of 30. The Demarker too has moved further below the oversold level. There is a likelihood that the pair will resume the upward trend because the bank’s plan to cut rates was already expected.

Australian dollar falls, AUDUSD technical analysis

Disclaimer

This article was provided by OctaFX. It should NOT substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.