The Australian dollar was trading 1.5% stronger on Tuesday, with the AUD/USD pair seen at around 0.7170 during the US session.

Earlier in the day, Australia's central bank cut interest rates to near-zero. It expanded its bond-buying program, as widely expected, in an attempt to ease the country's worst recession in a generation.

The RBA lowered its overnight rate by 0.15% to 0.1%, which should remain unchanged until inflation reaches 2-3%. Moreover, the central bank cut its three-year government bond yield target to 0.10%, and lastly, the RBA launched a new 100 billion AUD QE bond purchase program aimed at the 5-10Y segment of the government bond market.

Like everywhere else, the Australian economy is in a deep recession. Judging by the AUD/USD reaction, today's RBA actions were not sufficient, and the central bank needs to do more to debase its currency. 

However, we need to add that the US dollar has been sharply lower against other major currencies ahead of the elections, which prompted the rally in the AUD/USD pair as well.

The support is now seen at previous highs near 0.7160, and as long as the pair trades above it, the short-term outlook could be bullish. The next target for bulls will most likely be at October' highs of 0.7240.

Trading FX/CFDs on margin bears a high level of risk, and may not be suitable for all investors. Before deciding to trade FX/CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. You can sustain significant loss.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

AUD/USD fades an uptick above 0.7400 despite upbeat China's PMIs

AUD/USD pares gains and drops back below 0.7400 amid a cautious market mood, reflected by the losses in the S&P 500 futures. Australian-Sino trade tussle outweighs the vaccine optimism and upbeat Chinese NBS PMIs. 


EUR/USD: Refreshes three-month high towards 1.2000, battles triangle resistance

EUR/USD eases from fresh high since September 01. The pair rose to the highest in three months before a few hours but couldn’t cross the upper line of a five-week-old ascending triangle formation. RSI conditions warrant caution, bears are less likely to take entries above 1.1870.


NZD/USD refreshes 2.5-year high on strong China PMI above 0.7400

NZD/USD rises to the fresh high since June 2018 after China data. China’s NBS Manufacturing PMI, Non-Manufacturing PMI beat market forecasts in November. ANZ Business Confidence, Activity Outlook also came in positive for November.


Gold: Trades below 200-day MA for first since March

Gold is trading below the widely-followed 200-day Simple Moving Average (SMA) for the first time since March. The metal is changing hands near $1,783 per ounce, representing a 0.25% loss on the day. 

Gold news

Black Friday 2020 Discounts!

Learn to trade with the best! Don't miss the most experienced traders and speakers in FXStreet Premium webinars. Also if you are a Premium member you can get real-time FXS Signals and receive daily market analysis with the best forex insights!

More info

Forex Majors