Divergent comments from Stevens and Poloz sent AUD and CAD in opposite directions Monday. On the day, the US dollar was the best performer while the Aussie lagged. The RBA minutes are next. The RBA talk helped the Premium GBPAUD long, while weighing on EURAUD short. EURUSD, USDCAD, NZDUSD, EURGBP remain in progress.
We warned to start the week that the optimism about AUD after the Chinese rate cut might not last. The high of the day came minutes after the open at 0.7840 and a steady slide turned into a drop after Stevens spelled out the RBA stance by saying rate cuts are still on the table.