AUDUSD up to 0.6804
The AUD spiked up to 0.6804 after Governor Lowe said that the Australian economy was at a 'gentle turning point'.
Expectations had been for a rate cut in October after some poor labour data out earlier this month. However, Lowe's comments on a 'turning point' in the economy he has used before and would indicate that the RBA will hold rates steady at the next meeting. Therefore, we can expect AUD strength as that rate expectation is re-priced.
Rate cut expectations now down to a 60% chance from 80% earlier in the week.
