Aussie dollar gets destroyed after RBA cuts rates

The Reserve Bank of Australia just announced a 25 basis point interest rate cut and now the Aussie dollar is getting destroyed.

On Monday night, the RBA announced it would takes its main interest rate to 2.25% from 2.50%.

In its announcement, the RBA said, "The Australian dollar has declined noticeably against a rising US dollar over recent months, though less so against a basket of currencies. It remains above most estimates of its fundamental value, particularly given the significant declines in key commodity prices. A lower exchange rate is likely to be needed to achieve balanced growth in the economy."

Here's the chart of the Aussie getting clobbered against the US dollar.

More to come ...