AUDUSD fell from 0.92 to 0.9077 in response to dovish comments from RBA Governor Stevens in a speech and subsequent Q&A today. Stevens clearly endorsed the recent fall in the AUD and suggested that ongoing weakness in the Australian economy may require further measures from the RBA. Market pricing for the probability of a 25bps rate cut at the 6 August RBA meeting rose from 80% to 88% today. USDJPY was the other big G10 mover, rallying to 98.38 while EURUSD is off only slightly to 1.3253.
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