FxWirePro: AUD/USD fades RBA led bounce, extends slide to test 0.55 handle

AUD/USD chart - Trading View 

Technical Analysis: Bias Strongly Bearish

AUD/USD has erased early gains and has resumed weakness as Aussie bulls fade RBA and employment data led bounce.

The major was trading 3.25% lower at 0.5586 at around 04:35 GMT, lower from session highs at 0.5816.

The pair has tested 0.55 handle, hit session lows at 0.5506 which is levels unseen since Oct 2002.

AUD/USD initially jumped 90 pips as RBA met dovish expectations, something which was fully priced in.

The Reserve Bank of Australia cut rates by 25 basis points to a new record low of 0.25%, as expected. 

The central bank also announced a government bond purchase program, which is will commence from Friday.

Data released earlier today showed Australia’s unemployment rate stood at 5.1 percent vs 5.3 percent previous and 5.3 percent expected.

Australian employment data surprisingly beat estimates, but failed to impress Aussie bulls.

Fears of global and Australian economy slipping into recession has put global markets in a downward spiral.

The major is currently holding minor support at 88.6% Fib at 0.5495. Next support lies at 0.5229 (Aug 2002 low).