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RBA Stevens say's Aussie will likely fall further - Westpac

FXStreet (Guatemala) - Sean Callow, analyst at Westpac Banking Corporation noted that AUD/USD began its descent in early London around 0.7820, then dropped from 0.7770 to 0.7715 on the release of the prepared text of Governor Stevens’ speech.

Key Quotes:

"He said AUD “has declined and will very likely fall further yet, over time” and “the question of whether (interest rates) should be reduced further has to be on the table.”"

"However he also included various caveats e.g. signs that monetary policy is also supporting consumption and questions over whether high household leverage should be encouraged to increase even further."

"Westpac colleagues in New York didn’t regard Stevens’ overall mood as especially dovish."

USD/JPY on the bid in Tokyo on 119 handle

USD/JPY is currently trading at 119.35 with a high of 119.38 and a low of 119.17.
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Further RRR cuts by the PBOC are likely - Capital Economics

Mark Williams, Economist at Capital Economics, notes that further RRR cuts by the PBOC are likely, expecting probably another 150bp before the end of the year.
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