Australian dollar fell after the Reserve Bank of Australia (RBA) maintained its rate at a record low 2% and told the market that low inflation might give space for further monetary easing. RBA held its rate at 2% as expected. It has cut its rate by 2.75% since the end of 2011.

Technical Analysis:
Intraday preference: NEUTRAL
Reference Area: 1.7030-1.7000

Aussie is in consolidation mode, currently is moving just above the support area at 0.7030-0.7000. Note that hourly stochastic and CCI are rather flat just above the oversold area. A rebound might occur today, but possibly will be halted at the resistance area at 0.7107-0.7140.

Be careful if the support at 1.7000 breaks, because it will turn the intraday bias to bearish and possibly might push aussie down to 0.6962-0.6930.

Written by Andrew Bulan from www.EconomicCalendar.com