Why is the deputy RBA Governor talking the AUD up?

He’s not exactly talking it up but it’s a bit strange that he is downplaying the Steven’s remarks from yesterday, unless of course they were totally misinterpreted?

As FXWW888 opined yesterday, if the RBA had actually cut by 25bps on Tuesday when the AUD/USD was trading at .9220, it’s unlikely that it would have fallen by 200 pips. But that’s what has happened in the interim given the easing bias and the Stevens remarks.

There is little doubt in my mind that the AUD/USD is now quite oversold and we should now revert to dip-buying mode.

  1. Personally Jack I think best through AUD/USD, which will turn sooner or later and be back at 95cents. Try a dip-buying strategy in smalls for a few sessions and see how you go. Keep it tight but if it starts to work then ramp up a bit

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