The Reserve Bank of Australia's key cash rate cut to a record low of 2.25 per cent this week saw the Australian dollar fall in tandem. Then again all so-called commodity currencies have weakened over the past five months with the drop in oil prices in turn affecting those of base metals. Indeed, the aussie has given ground to the greenback for at least two years. The massive hammer candlestick pattern on this chart, coupled with an extreme oversold indicator, divergence in bearish momentum, and Stochastics and MACD turning higher, suggests an interim low might be in place. All action below 79 US cents might come to be seen as an outlying false break.
