AUD/USD fell hard during the Tuesday session as traders both sold off risk assets and came to grips with the interest rate cut that the RBA did during the session. The Reserve Bank of Australia mentioned that they are in “neutral” mode, and we think that the currency will be very reluctant to move in the affirmative with the risk profile out there. The headline risks out there will continue to plague the currency, and as long as the global economy is so shaky, we continue to think selling the rallies as long as we are under the 1.05 level. Buying won’t come into play until we can break the recent highs around the 1.0750 level.
Written by FX Empire