FXstreet.com (San Francisco) - Yesterday, RBA Deputy Governor Lowe stated that the AUD was “uncomfortably high” and that intervention remained on the table, which would be a “big step”.

From Sean Callow of the Westpac Global Strategy Group in Sydney: “We view Lowe’s prepared text as not a typical hawkish central bank speech. He accepted that rates could go lower, suggesting that we may not be that far below neutral due to the ‘new normal’. It seems the biggest concern is around non-mining investment, so ongoing weakness in confidence and spending will certainly be signals for lower rates. Westpac expects another 25bp cut in Q1 2013.”