RBA cuts rates, Aussie dollar strengthens
City Index May 5, 2015 3:30 PM
<p>The RBA cut interest rates overnight from 2.25% to 2.00%, which was largely expected. However, an anticipated sell-off didn’t follow despite initially pushing AUD/USD down […]</p>
The RBA cut interest rates overnight from 2.25% to 2.00%, which was largely expected. However, an anticipated sell-off didn’t follow despite initially pushing AUD/USD down to lows of 0.7796, but with a hawkish tone in the statement and no word of further easing we now see the Aussie trading higher and just below the 0.79 level.
In the UK, the Construction PMI has been released and it’s another weak read at 54.2 from 57.8. This sent cable down to the lows of the day at 1.5091 but since has found good support and is now back above the 1.51.
This afternoon important US data is set to be released with the trade balance kicking us off, which is expected to be weaker around the -41.2b level from -35.4b. The more important of the data will be at 3pm UK time, which is the ISM non-manufacturing PMI expected to be 56.2 – pretty close to its last read of 56.5.
Support 1.1070 1.1040 1.0990 | Resistance 1.1150-1.1190-1.1280
Support 118.60-118.20-117.80 | Resistance 119.40-119.80-120.20
Support 1.5050-1.4900-1.4750 | Resistance 1.5155-1.5350-1.5500
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