Tuesday's trading session was opened by the next meeting of the Reserve Bank of Australia, in which the Australian regulator, as expected, decided to reduce the key interest rate by 25 basis points, from 1.25% to 1%. However, the logical weakening of the national currency against the background of this decision was not followed. Pair AUDUSD after a brief correction to the level of 0.6950 quite quickly recoup losses and went back to the 0.70 resistance.
Despite such dynamics frustrated sellers is not necessary. Market participants agree that the depreciation of the AUD is still followed, albeit with a slight time lag. This belief is based on the fact that in the course of the accompanying statements made after the announcement of the decision on the interest rate, the chairman of the RBA Philip Lowe noted that "plans to control not one more rate cut before the end of this year." Lowe's continues to believe that only by reducing the level of unused labor resources in the country can expect to achieve the inflation target value. For this reason, the RBA plans to reduce the unemployment rate from the current 5.2% to 4.5%. It is worth noting that this is a realistic goal, but its achievement is possible only if the sharp easing of monetary policy with bringing the key rate to near-zero mark.
AUDUSD SellLimit 0,7010 TP 0,68 SL 0,7050
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author trader analyst Artem Deev company AMarkets
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