Thanks so much for the explaination! Makes sense, I never understand the impacts of lowering interest rates against currency. I guess I need to google it (as this is not the forum for it) but why does cutting interest mean the domestic currency value depreciates?
Disliked{quote} Hi Lukex,.. To answer your question: As the AUD rate is cut, theoretically the currency might go down For the JPY is strong means that JPY/USD might be still be going down further For the USD is still weak, means the EURUSD will still be going up As for AUD and JPY situations, is good to watch AUD/JPY, it might go down However, everything depends on the market's will; we can't predict where exactly prices are heading. To get profit from those situations, its good to use the clich, "buy on dip and sell on rally". Trade safely, always use...Ignored