Aussie dollar is trading in deep negative territory at $1.0328 near session lows Tuesday, after the RBA cut the cash rate 50bps, bigger than the majority of the market had anticipated. The rate had spent the early stages of the Asian session in a fairly narrow range with prices reaching a high of around $1.0429 before easing back to around $1.0420. Prices slipped a little after the release of Chinese CFLP April PMI which came in slightly below expectations at 53.3 with the market briefly touching $1.0417 before recovering back to settle around $1.0422. Pre RBA announcement opinion was divided as to whether there would be two 25bps cuts or one clip of 50bps unleashed today. Sentiment had shifted a little towards 50bps, with the market pricing showing an expectation of 32bps. The rate has hit a session low of around $1.0324 and now trades $1.0328.
EasyForexNews Research Team