AUD/USD drops below 0.9380 after RBA Comments

Australia’s dollar dropped at least 0.3 percent against all of its 31 major peers after Reserve Bank Governor Glenn Stevens said the currency was “overvalued” by most measures.

The Aussie also declined after retail sales unexpectedly fell in May. The U.S. dollar rose against the yen for a third day as a stronger-than-expected private jobs report boosted optimism that nonfarm payroll data today will show the U.S. economic recovery is gaining traction. The euro held a three-day gain versus the yen as investors awaited clues on the European Central Bank’s next move when President Mario Draghi speaks today.

“Stevens’s language is about as strong as could be expected without introducing an explicit policy-easing bias,” said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. “It makes the case for Aussie underperformance against a range of currencies until further notice.”


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