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.