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Australian Dollar Fell after Australia Cut Rates to Support Economy


Australian dollar (Also known as Aussie) was hit by the market shift in Australia on Tuesday. The Reserve Bank of Australia (RBA) lowered rates by 50 basis points, twice as much as the economists had expected. The economists had been expecting a 25 basis rate cut.

AUDUSD broke a support level of 1.03 and may go further down to the lows of April at 1.02.

[caption id="attachment_362" align="alignleft" width="500"]Australian Dollar vs US dollar Candlestick Chart May 1, 2012 Aussie fell sharply on RBA rate cut[/caption]

AUDJPY fell in the 82 area, and AUDCHF seem to be approaching a previous support of 0.9326.

New Zealand’s dollar (also known as Kiwi) weakened versus 15 of its major counterparts, losing 0.5 percent to 81.45 U.S. cents and 0.6 percent to 64.95 yen.

By Kiana Danial at Forex Diva

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