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5 May 2015
EUR/AUD falls to 1.4070
FXStreet (Mumbai) - The EUR/AUD fell to a fresh session low of 1.4070 after the Reserve Bank of Australia (RBA) cut interest rates by 25 basis points to 2%.
AUD rebounds, but will it sustain?
The Australian dollar rebounded as the markets had already priced-in a 25 basis point rate cut. The EUR/AUD popped to 1.4282 for a brief moment, before falling to 1.4079 levels. However, it remains to be seen if the AUD manages to sustain the gains, since the RBA has expressly stated that a further fall in AUD seems likely and necessary.
Ahead in the day, the pair could be influenced by the latest round of economic forecasts by the European Commission.
EUR/AUD Technical Levels
The immediate support is seen at 1.4050, under which the pair could extend the drop to 1.3986 (50-DMA). On the flip side, a break above 1.4105 (hourly 100-MA) and 1.4200.
AUD rebounds, but will it sustain?
The Australian dollar rebounded as the markets had already priced-in a 25 basis point rate cut. The EUR/AUD popped to 1.4282 for a brief moment, before falling to 1.4079 levels. However, it remains to be seen if the AUD manages to sustain the gains, since the RBA has expressly stated that a further fall in AUD seems likely and necessary.
Ahead in the day, the pair could be influenced by the latest round of economic forecasts by the European Commission.
EUR/AUD Technical Levels
The immediate support is seen at 1.4050, under which the pair could extend the drop to 1.3986 (50-DMA). On the flip side, a break above 1.4105 (hourly 100-MA) and 1.4200.