The RBA held rates at 3.50%, as mostly expected, while some did forecast a 25-basis-point cut.
This is mostly a non-news event as the bank stays in a wait-and-see mode. But it did serve as a temporal pivot
Following the announcement, the AUD loss ground across the board, more so against the USD and JPY because at the same time, there also appears to be a resistance to the Asian session slow risk-on rally. of move as reflected by in the S&P500 futures which fell from 1360.50 to 1359.25, the EUR/USD which fell from 1.2604 down to 1.2591, and the GBP/JPY falling from 125.27 to 125 within the 15 minutes after the release.
It doesn't seem like this release in it of itself has any ammunition. So let's see if there is a risk-off follow-through in the European session.
Fan Yang CMT is a forex trader, educator and Chief Currency Analyst of FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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