Aussie Sell-off on RBA’s Rate Cut
Amid broad-based US dollar strength, Asian trading has been active due to major economic events. The Aussie went through ups and downs before setting to fresh lows after the Reserve Bank of Australia cut the monetary rate by 25 bps as expected. RBA reiterated that an extended period of low interest rates will be required and repeated that a ‘gentle turning point has been reached.’ RBA Governor Lowe’s speech later today will add some more clarity to the situation.
The Euro has been consolidating on low grounds while focusing on the release of the Eurozone inflation data for September. It could regain some strength of the core inflation beats estimates. The pound had modest gains on news that the UK PM Johnson is expected to reveal secrets of his Brexit plan. The US Manufacturing PMIs are also due today.
NOTE: Traders are advised to be cautious and be updated on the major economic news causing high volatility to achieve better trading results.
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