Perhaps its a coincidence, since an RBA Governor’s statement usually shouldn’t have an impact on the USD, but USD/JPY dipped 15 pips and EUR/USD rose 15 after Glenn Stevens mentioned the difficult time the US is having in finding a way to avoid a major fiscal contraction. The RBA governor remains upbeat about regional Asia, China in particular, but is becoming less worried about inflation. Cue a 25 bps rate cut next month or at least a signal that a cut is due in October/November.
Technically speaking AUD/USD looks more likely to go down rather than up in the short-term, as is consolidates just below the 20-day MA.
