AUD/USD surprised the bears with a sharp rebound yesterday post the RBA rate cut.
The RBA delivered a widely anticipated 25bps cut to bring the cash rate to 1.50%
AUD/USD hit day lows at 0.7490 immediately after the decision but then spent the rest of the day rallying sharply higher.
Highs of 0.7640 were seen at the US open and we have since settled back at 0.7600.
The USD was on the backfoot across the board yesterday with EUR/USD breaking higher above 1.12 and USD/JPY plunging below Y101.
USD/JPY Y100 is a huge psychological level and with stock markets globally under pressure a test is very likely in coming sessions.
Oil continued its slide breaking below $40 a barrel for the first time since April.
XAU/USD however capitalized on the weak USD surging to $1365 helped as well by the risk off feel from the stock market rout.
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