RBA’s Governor Lowe is speaking in front of parliament today and he has a few headlines coming through that are of note.

The main one is obviously that he suggests a rate cut this year is unlikely. That comes on the back of Westpac Bank coming out and saying they expect two cuts this year.

That news yesterday along with the coal ban in China, saw the AUD/USD get smashed, despite positive news on employment.

Some other key points from Lowe are that he thinks the outlook for the economy is positive overall and he thinks the probability of a rate most is broadly balanced.

Aussie Outlook

The AUD/USD tested the major level at 0.7200 and dumped hard off that point to take it back to 0.7100.

0.7050 and then 0.7000 are my next two key support levels below, with 0.7100 key support.

0.7200 is R1 and 0.7300 is R2 and the most recent highs sitting at 0.7400.