Odds of a July RBA rate cut jump above 70% post-RBA Lowe’s speech

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.