Post Labour Day surprise from Glenn Stevens

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Australia?s central bank cut interest rates to a fresh record low at 1.75 basis points as it moves to counter the emergence of disinflation that?s swept the developed world. Reserve Bank of Australia Governor Glenn Stevens this morning reduced the?cash rate by 25 basis points as predicted by 12 of 27 economists surveyed. The Inflation data which was out on April 27th?showed quarterly deflation in the consumer price index and the weakest annual gain on record for core inflation.

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Price drop 163 pips from the high. If the AUDUSD is indeed in a sell position, price should reject 0.7637 – 0.7656 range. From a higher time frame perspective (Daily analysis), a true down trend will only be confirmed when price closes below 0.7539.