Australia RBA Cash Target - AUDUSD Drops on RBA statement of possible further easing

Last night Monday February 5th 2012 at 22:30 EST (03:30 GMT on Tuesday February 6th) the RBA made their decision on hold Interest Rates steady at 4.25%. This was expected by all analysts unlike last month where all but 3 of the 27 surveyed by Bloomberg expected a cut. The Australian Economy seems to be holding up well enough, despite a small slowdown in China, however the RBA is watching affairs unfold in Europe and is aware that this will affect the global economy and expressed their intention to lower rates if things get worse.

Here is a link to their Statements

So the market took this as a cue that the next move from the RBA could still be a cut and thus the Australian Dollar Forex pairs fell.

Here is a 1 minute chart of the AUDUSD forex pair:

and this is the 1 minute chart of the AUDJPY forex pair