Aussie was among the main movers this morning, as it retreated under pressure from comments by RBA Governor Glenn Stevens early in the day. Aussie-dollar started at $0.9572 this morning after a $0.9570 to $0.9615 range overnight. It held near $0.9570 initially but dropped sharply to $0.9530 as Stevens made repeated references to the aussie in his speech, saying the aussie will likely be “materially lower” in future as current levels are not supported by relative cost levels or productivity. Aussie-dollar extended lows further to $0.9515 before staging a mild recovery to $0.9547 on news that China had injected liquidity into its money markets. The gains petered out though asaussie continued to hodl a heavy bias, and the pair then dropped further to a $0.9505 early afternoon low. Aussie-dollar was last at $0.9516, although strong demand from $0.9500 and $0.9480 may form a base for the pair near-term, with any break below $0.9500 to see the pair at lows not seen in almost 2 weeks.
