Today’s session was marked by the RBA’s decision to cut rates, sending the Australian Dollar down 0.9% . Other currencies did not move as much, with the Swiss Franc being the strongest of majors in the NA Session (+0.3%).
RBA Meeting, Canadian CPI reviews
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As introduced, the Reserve Bank of Australia cut their Cash Rate by 25 bps, as expected. What moved the Australian dollar was unexpected dovishness with mentions of a 50bps cut, that sent the AUD plunging initially.
There was also a small beat on the Canadian CPI release, which was of 1.7% y/y vs 1.6% expected. Read more on today’s Canadian CPI release. Odds for a cut at the June meeting are now much thinner, standing at about 35% vs 65% this morning. USD/CAD is mostly unchanged on the day
AUD/USD Intra-day Chart
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AUD/USD 30m Chart, 20/05/2025. Source: TradingView
The Australian Dollar gave back it’s rally from yesterday, though today’s fall from almost 1% was stopped by the support zone between 0.6385 and 0.64.
Intra-day levels to watch:
- Support 1 : 0.6375
- Support 2: 0.6357
- Resistance & MA 200: 0.6425
Market Snapshot
Most majors are up against the dollar with the CHF leading by 0.3%. The NZD is dragged down with the dovishness from its neighbour.
Other markets paint a picture similar to last month flows: Stock indices closed higher mostly in Europe with the Spain Index leading gains (up 1.6%), with US indices down. The Nasdaq leads the correction down 0.5%.
Gold rallies back 1.5%, up $50.5 on the day. Bitcoin and Oil are both down by about 0.6% on what seems to be position closing.
What’s for the rest of the Session?
The rest of the session shouldn’t be too eventful, with mostly FED Speakers on the roll. Watch for any headlines indicating where they stand more dovish or hawkish , voting members speaking this afternoon are Musalem and Kugler.
Tomorrow we’ll see the CPI release for the UK and the beginning of a G7 Meeting in Canada,
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