CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

RBA cut rates AUD USD down 160 points

Article By: ,  Financial Analyst
February 3, 2015 9:28 AM

The Royal Bank of Australia (RBA) took a surprise cut to the interest rate last night from 2.5% to 2.25%, causing a sell-off in the AUD/USD down to a 6-year low. Dovish comments followed about the economy opening  possible further cuts in the future, but a key level for the RBA has always been the AUD/USD at 0.75 – it’s now currently trading at 0.76, so its very close to the target they want.

The CHF pairs had more movement as the rumours start to spread of a possible corridor in the EUR/CHF via the SNB. The rumoured figures are 1.05 – 1.10, which put the EUR/CHF firmly above the 1.05 yesterday and has continued to hold.

The euro made gains against the USD yesterday – unlike most others – as the EUR/CHF was bid, helped along with a marginally better manufacturing PMI data. This started the day off pretty flat since last night, with little data out today to change that.

In the UK, the pound struggled yesterday even with slightly stronger than expected manufacturing PMI, with a lot more pressure coming from the EUR/GBP trading pushing it lower. Today is the turn of the construction PMI, which is expected to be weaker than previous at 57.0 from 57.6, meaning we could see more pressure on the pound.

The Kiwi was offered overnight falling nearly as fast as the Aussie, with the unemployment rate expected to drop to 5.3% from 5.4%. It may find some support, but be aware of the RBNZ governor Wheeler speaking after the event, as the markets are paying attention to how the central banks globally are acting.

 

 

AUD/USD
Supports  0.7765-0.7730-0.7700    | Resistance 0.7830-0.78600-0.7895

 

 

EUR/USD
Supports  1.1300-1.1260-1.1230   | Resistance 1.1370-1.1400-1.1440

 

 

GBP/USD
Supports  1.4990-1.4960-1.4910  | Resistance  1.5075-1.5120-1.5160

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024