Fresh weakness after RBA rate cut eyes 2019 low
The Australian dollar was the top loser of Asian session on Tuesday, down around 1% after RBA cut interest rate by 25 basis points to record low at 0.75%, in widely expected action.
The central bank’s statement signaled possible further easing in order to support sustainable growth that increased pressure on Aussie.
Fresh weakness cracked psychological 0.6700 support, pressuring Aug/Sep lows at 0.6677/89, violation of which would open way for test of 2019 low at 0.6706 (3 Jan spike low).
Daily chart shows rising negative momentum and MA’s in full bearish setup that supports scenario, however, oversold stochastic warn that bears may slow and enter consolidation before continuing lower.
Lower base at 0.6740 zone (lows of four-day congestion) marks solid resistance which is expected to cap, with stronger upticks to remain under falling 10DMA (0.6767) and maintain bearish bias.
Res: 0.6736; 0.6746; 0.6767; 0.6788
Sup: 0.6700; 0.6687; 0.6677; 0.6706