• AUD/USD edged lower on Tuesday after Australia's central bank cut its main cash rate as widely anticipated by markets.
•Australia's central bank cut its cash rate by 25 bps to 3.85%, a two-year low, citing a weaker global outlook and easing inflation, while staying cautious on further cuts.
• The Reserve Bank of Australia, after a two-day meeting, said inflation risks have eased and global factors may slow the domestic economy.
• The RBA noted inflation would fall and unemployment rise due to global trade tensions, even with rate cuts in line with market expectations.
•At GMT 05:00, the Australia dollar was down 0.33% to 0.6436 against the US dollar.
• Immediate resistance is located at 0.6490(23.6%fib), any close above will push the pair towards 0.6505(Higher BB).
• Support is seen at 0.6384(38.2%fib) and break below could take the pair towards 0.6337(Lower BB).
Recommendation: Good to buy around 0.6410 with stop loss of 0.6320 and target price of 0.6490
