AUD/USD slumps below 0.7600 on RBA’s surprise rate cut

By FXStreet The AUD/USD pair ran through fresh offers and plunged almost 140-pips after the Reserve Bank of Australia (RBA) unexpected slashed the benchmark interest rate by 25bps to a record low of 1.75%.

AUD/USD: Reverses course on RBA easing

Currently, the AUD/USD pair slumps over 1.10% to fresh daily lows of 0.7575, before recovering some ground to climb back towards 0.76 handle last minutes. The bulls were caught off-guard and surrendered entire gains after the bears fought back control on RBA’s rate cut announcement, driving the AUD/USD pair sharply lower from four-day highs reached at 0.7720 levels.

The RBA cut the key cash rates by 25 bps to a record low of 1.75% at its policy meeting this Tuesday, in a bid to combat lower prices pressures and spur economic growth. The central bank sounded more downbeat on the economic prospects in light of deteriorating inflation outlook. While remained concerned over the higher AUD level, citing rising AUD could complicate economic adjustment.

Markets now assess the recent RBA policy decision, which completely overshadowed upbeat Aus domestic data released earlier today. Next on tap for the major remains the Fed speak due later today ahead of the US jobs data due tomorrow.

AUD/USD Levels …read more

Source:: FX Street