• AUD/USD slipped on Tuesday after the Reserve Bank of Australia cut its cash rate to 3.60%, marking the third cut this year and aligning with market expectations.
• The Reserve Bank of Australia on Tuesday cut its main cash rate by 25 basis points to 3.60% as widely expected following a two-day policy meeting.
•The Reserve Bank of Australia lowered its 2025 GDP forecast to 1.7% from 2.1%, citing weaker public demand early in the year unlikely to improve later.
• The country’s benchmark rate is now 3.6%, the lowest since April 2023, matching economists’ expectations.
• The RBA said inflation has fallen “substantially” since its 2022 peak, with higher rates bringing demand and supply closer to balance.
• At GMT 05:07, the Australian dollar was down 0.16% to 0.6501 against the Greenback
• Immediate resistance is located at 0.6511 (SMA 20), any close above will push the pair towards 0.6600(Higher BB)
• Support is seen at 0.6474 (38.2%fib) and break below could take the pair towards 0.6422(Lower BB).
Recommendation: Good to sell around 0.6510 with stop loss of 0.6600 and target price of 0.6460
