This morning, the reserve bank of Australia cut interest rates by a quarter point (from 1.25% to 1.00%) as expected. The report was mixed and opened the way for further rate cuts in the future.
AUDUSD dropped from 0.7033 levels. The decline was halted by daily chart support at 0.6961 levels. Immediate resistance comes at the 0.7007 levels where rejection is likely. However; above 0.7007 would challenge 0.7030 levels. A break above that level will restore the upside momentum and pave the way to 0.7060 levels ahead of 0.7100 levels, further upside, resistance comes at 0.7138 levels.
On the downside. Below 0.6961 (very likely) will test 0.6928 levels. It may test 0.6961 before a lower leg below 0.6928 levels. Anyway; a cut through 0.6928 aims the 0.6875/0.6850 levels ahead of 0.6800 levels.
In conclusion: The AUDUSD still faces corrective threats below 0.7030 levels…