Previously the RBA had said again and again that the next rate move was likely to be up.

Lowe relented in his speech today, admitting its more balanced:

  • "Over the past year, the next-move-is-up scenarios were more likely than the next-move-is-down scenarios. Today, the probabilities appear to be more evenly balanced,"

AUD/USD sent lower:

Previously the RBA had said again and again that the next rate move was likely to be up.

The full text of his speech and the major pints are here:

Make no mistake, this is a significant change in tone from the RBA as expressed by the Governor here. The current incarnation of the RBA has shown itself to be very … stubborn sounds harsh, so not that … slow to respond to gathering signs of weakness. Its taken a lot of data and a long time for the RBA to budge this small amount. They are still way behind events if this is where they are currently at.

AUD will remain offered on rallies.