The aussie holds at 1.0169, after trading in a 1.0155 to 1.0255 range. Traders have mixed views about the pair now that it has sold off hard after the 25 basis point RBA cut overnight to 2.75%. While analysts expecting a cut were in the minority, traders were more 50-50 on a possible cut, so some feel that Aussie losses are now extended. Aussie bulls are watching to see if the 2013 lows near 1.0115 (March 4 low) will give way and look to buy ahead of that with a tight stop.
Aussie bears see that level giving way fairly quickly, with parity beckoning beyond that. The Australian Dollar was last at parity with the greenback in June last year and that was in the middle of a long march higher. The conclusive run higher on last June 29th when the market opened at 1.0045, dropped to 1.0019 and then soared more than two figures to 1.0259, left no levels of note in the last 100 points above parity.The aussie has now run below its one and two year average, and is just above it three year average at 1.0114 and still well above its five year average of 0.9356.
The rest of the world's central banks have now joined the Federal Reserve in the liquidity sweepstakes.
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