AUD/USD drops 64 pips to 0.7175 as RBA's Lowe says rate outlook is more evenly balanced

The Aussie dollar is being offered across the board in response to comments by Reserve Bank of Australia's (RBA) governor Lowe that the rate outlook is now more evenly balanced.

"Over the past year, the next-move-is-up scenarios were more likely than the next-move-is-down scenarios. Today, the probabilities appear to be more evenly balanced," Lowe told the National Press Club in Sydney.

He added further that if the job market tightened, then rates would rise, but any softening would force the RBA to reassess the situation.

The major change in attitude toward interest rates is hurting AUD/USD pair, which is currently trading at the session low of 0.7175 - down 64 pips from the high of 0.7239 seen before Lowe's speech.

It is worth noting that markets already put the chance of a rate cut this year at better than 50-50, even though the RBA, until today, maintained that the next move in rates could be on the higher side. With RBA's change of tone on interest rates, that rate cut probability could rise further. 

So, the path of least resistance for the AUD is now to the downside. 

AUD/USD Technical Levels