The RBA has just announced its decision to cut rates by 25 basis points to a new low of 2%.
It seems that they have targeted the Aussie dollar in this announcement with the penultimate paragraph highlighting that:
The Australian dollar has declined noticeably against a rising US dollar over the past year, though less so against a basket of currencies. Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices.
But they have dropped the easing bias with the final paragraph saying:
The Board judged that the inflation outlook provided the opportunity for monetary policy to be eased further, so as to reinforce recent encouraging trends in household demand.
That’s helped the Aussie rally off a low below 78 cents and its now higher than it was before the cut.
That’s currencies for you.