As expected by most economists, RBA cut cash rate to 2.00% from 2.25%. Knee-jerk reaction was to sell Aussie, but the dip was bought in a matter of minutes and the pair was soon breaking to new session highs and above 0.79. After that it pulled back towards 0.785 and consolidated for a while, but it continued higher soon after US traders got to their desks.

If it manages to get back above range high near 0.7935 and holds there, that would put 0.80 back into focus and then previous week high at 0.8075.

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