The Australian dollar endured heavily losses after the Reserve Bank of Australia decided to cut the interest rate by a half percent point to 3.75% from 4.25% to support growth amid stable inflations rates.
The decision took the market by surprise as they expected the RBA to only cut rates by 25 bp. The Bank sees the economic recovery has moved in narrow range during the past three months affected by the European crisis, while CPI inflation has also declined, from about 3.5 percent to a little over 1.5 percent at the latest reading.
On the other hand, the Japanese yen has also retreated against the U.S. dollar to the lowest level in five days, recording a low of 79.66 and a high of 80.36, while it started the day at 80.35.
Moreover, the NZD/USD pair dropped for the second straight day, and reached the lowest at 0.8131, while it started the session at 0.8181 and recorded a high of 0.8184.
Technical analysis for precious metals with major support and resistance levels and recommendations for 18-08-2009