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AUD/USD – Technical Outlook Following RBA Rate Cut
The rate cut early this morning by the Reserve Bank of Australia wasn’t completely unexpected, but the reaction by traders suggests there was more in the camp, which didn’t believe the RBA would go ahead with the cut. The RBA slashed its benchmark rate from 2% to 1.75%. The probability of a rate cut jumped dramatically following dismal inflation data last week. It was such a large miss that the market went from pricing in a 16% chance of a May rate cut to nearly 50%, and rose above the half-way level heading into this morning’s meeting. Where does this leave the AUD/USD? Following the poor CPI data last week ... (full story)