AUD/USD breaks 0.8940 support, harsh decline post RBA
After an initial spike towards 0.8970, the AUD/USD has rotated aggressively lower in the last few minutes, with no apparent trigger causing the sharp drop in prices.
AUD/USD has broken down support at 0.8940, extending the slide until 0.8924, where the top of the hourly kumo cloud appeased the decline. Watch for a retest of 0.8940, likely to act as resistance now.
The RBA released was positive for the AUD, after the CB upgraded both growth and inflation projections, setting the June 2014 GDP growth forecast for Australia at 2.75% vs 2.5% in Nov, while inflation was revised higher to 3%. That being said, the core headlines of the announcement were old news, thus what may have forced the harsh fake move, especially ahead of the NFP in the US.