Australian dollar down more than 2%
It's always tough to pick which support lines will hold up after a game-changing central bank announcement.
Last week, when the BOJ didn't cut, there were bidders lurking around the April lows and the pair held it. But a day later it gave way and USD/JPY has been stuck in the mud since.
Today all eyes were on 0.7550 and 0.7500 in AUD/USD but both have broken now. The latest thrust hit 0.7490.
The one saving grace for AUD/USD is that Stevens didn't hint at another cut soon. The OIS market shows a 10% chance of a June cut and 26% chance of a July cut.
There is no reason for those probabilities to rise unless Australian economic data hits the skids.
However, it's never a good idea to fight the momentum when it comes after a big announcement. For now, the April low of 0.7490 is holding and that's followed by support at 0.7476.
The 55-dma at 0.7514 has broken but it will be important on a closing basis with spot currently at 0.7505.
