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The governor of the Reserve Bank of Australia said it is likely to have a further decline in the Australian dollar, and AUD/USD reacts.

AUD/USD is erasing previous gains and falling to 0.8715, despite a lot of USD weakness across the board. Update: AUD/USD now loses the round 0.87 level.

Stevens also said that investors in the foreign exchange markets are underestimating the risk of a decline in the value of the Australian dollar.

His comments offer a stronger tone regarding the currency than the RBA Meeting Minutes from the November meeting, released earlier in the day.

Other commentary refers to the transition away from mining, which is not in the realm of  the central bank, and Australia’s strong credit rating, which could be a double edged sword – it strengthens the Australian dollar. Productivity needs to improve, and for quite a long time.

A recent analysis:  Sell AUD/USD On Any Bounce – Natixis. Here is how this  turnaround looks on the AUD/USD 30 minutes  chart:

AUDUSD down on Glenn Stevens comments November 18 2014 Australian dollar to fall more