Global macro overview for 02/07/2016:

The Reserve Bank of Australia had decided to cut the interest rate by 25pb to the level of 1.5%, just as expected. In the monetary policy statement, the RBA said, that the prospects for CPI returning to the targets will be improved by cut and it will not likely to worsen housing market risks. Nevertheless, the job market indicators are still mixed and global economy growing at a pace below average, especially Chinese pace of growth appears to be moderate. In conclusion, the RBA behaved as anticipated by cutting the rates and trying to stimulate the slowing economy once again.

Let's now take a look at the AUD/USD technical picture at the daily time frame. After the false break out above the resistance at the level of 0.7647, the market returned to the congestion zone, but still traded above the 55 DMA. Currently, the bearish engulfing pattern suggests more downside risk for this market. The next support is seen at the level of 0.7419.