Aussie edged up in a quiet Asian trade
With no data releases from Australia this morning Aussie continued to raise after the PBOC reduced its two prime lending rates on Friday. The People's Bank of China cut its one-year benchmark bank lending rate, as well as its one-year deposit rate and the bank reserve requirement ratio on Friday night, Australian time, to boost spending.
The cut was a lifeline to the global economy, but the initial surge in the Australian dollar quickly collapsed, OANDA Australia and Asia Pacific senior trader Stephen Innes said. "While a rate cut is generally supportive of the Aussie, this, however, is the sixth cut this year," he said. China’s easing late on Friday was the latest reminder of the monetary policy divergence taking place between the Federal Reserve and other central banks.
Aussie is currently being trade around 0.7250 handle. Pair is likely to find support around 0.72 level and resistance above 0.73 area. There will be no major data releases later today.
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