Following the dovish reiteration by the Reserve Bank of Australia (RBA) Governor Lowe earlier today, markets are now pricing in the odds of a July rate cut above 70% when compared to a 50% chance before his speech.
Lowe said it is not unrealistic to expect a further reduction in interest rates as there is considerable spare capacity in the labor market despite strong jobs growth.
Meanwhile, the Aussie continues to remain in a consolidative mode just below the 0.69 handle, as the dollar bleeds out post dovish FOMC.
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