It appears that the RBA is certainly still willing to cut rates further if needed, at least that’s what the RBA minutes suggested when they were released today.

The main takeaway was that the board is still seriously considering cutting rates once again and that means the odds of a further cut in February now appear quite high.

The AUD/USD has weakened and is down around -0.20% on the release. That sees the Aussie sitting under the 0.6800 mark.

There was a fair bit of confidence headed into the last RBA meeting that the board were getting set to stop their rates cuts and stabilise for a while. That all came about because the previous month saw a downtick in the jobless rate. However, that number was turned on its head when the jobs situation appeared to worsen only one month later.

So now the focus is back on cutting rates, just when we all thought things had changed for the better.

That is also opening up other issues as well that the minutes highlighted. Namely the impact on savers and the fact that low rates inflate assets such as housing. These are major concerns for the RBA and ones that appear to be tough to avoid.

Given that the AUD/USD is falling away quite substantially now and is under 0.6800, I really feel we are on the edge of a bit of a drop here.

The obvious level now is 0.6700 and I think the odds of a move to that point are now fairly high. The odds of a rate cut in Feb keep moving higher and we should look to trade around that idea.

So we can now risk above 0.6800 and even enter on a break of the swing low here at 0.6770, which would probably be a good momentum play.