Aussie Dollar shrugs off rate cut

The Aussie Dollar rallied off primary support at $1.015 despite a 25 basis points rate cut by the RBA, to a historic low of 2.75 per cent. Narrow fluctuation of 63-day Twiggs Momentum around zero suggests a ranging market. Follow-through above $1.03 against the greenback would suggest another test of $1.06.

Aussie Dollar/USD

Fall of the Aussie has long been predicted as commodity prices weakened, but capital inflows from investors and central bank diversification of their traditional dollar and euro holdings have shored up the AUD above parity. Capital flows, however, are fickle and will increase the severity of any eventual fall — so don’t grow complacent.

2 Replies to “Aussie Dollar shrugs off rate cut”

  1. What does the trend suggest? I see the close today was 1.008. Is this enough break through of the support for a downtrend?

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