3 Feb 2015
AUD/USD falls to fresh 5-1/2 year lows
FXStreet (Mumbai) - The AUD/USD pair extended losses to hit a fresh 5-1/2 year low of 0.7634 at the onset of the European session after the Reserve Bank of Australia (RBA) unexpectedly cut interest rates by 25 basis points.
Investors ditch Aussie in search of yield
The RBA’s decision to cut interest rates to record low of 2.25% has led investors to find the alternative high yielding currencies. Moreover, the AUD and the NZD, being high yielding currencies, were preferred after the central bankers across Europe and Asia began the race to a looser monetary policy in the last quarter of 2014.
However, the investors are now likely to shift out of the Aussie and into other relative high yielding currencies. Consequently, the AUD/NZD pair hit a two-week low of 1.0574 post RBA rate cut.
AUD/USD Technical Levels
The pair currently trades at 0.7631; down 2.2% for the day. The immediate resistance is seen at 0.7674 levels, above which gains could be extended to 0.7718 levels. On the flip side, support is seen at 0.7600 and 0.7500 levels.
Investors ditch Aussie in search of yield
The RBA’s decision to cut interest rates to record low of 2.25% has led investors to find the alternative high yielding currencies. Moreover, the AUD and the NZD, being high yielding currencies, were preferred after the central bankers across Europe and Asia began the race to a looser monetary policy in the last quarter of 2014.
However, the investors are now likely to shift out of the Aussie and into other relative high yielding currencies. Consequently, the AUD/NZD pair hit a two-week low of 1.0574 post RBA rate cut.
AUD/USD Technical Levels
The pair currently trades at 0.7631; down 2.2% for the day. The immediate resistance is seen at 0.7674 levels, above which gains could be extended to 0.7718 levels. On the flip side, support is seen at 0.7600 and 0.7500 levels.