The Australian dollar fell after Glenn Stevens opened the door for another reduction in interest rates

The Australian dollar is back below 72 cents after market participants saw the recommendation of the Governor of the Bank of Australia Glenn Stevens to guide inflation to 2-3% as confirmation that Bank of Australia will again cut interest rates because of inflation.
In remarks Stevens said the RBA was "very committed to achieve the goal of inflation through monetary policy."
The medium-term inflation target is 2-3%, it is not firm and does not require a response from the bank of Australia and traders act as if the door to a further reduction in interest rates is still wide open.
Stevens also said that the Australian dollar does what is expected to do and act as a "shock absorber" for the economy.
So Stevens would be pleased if the Australian dollar goes back below 72 cents, as many traders now expect it to fall to its lowest levels for the year - 0.6850. This will provide a significant boost to overall economic growth, as Stevens said that if it is stronger, that would be better.
He also added that demand for housing slows.
From his remarks analysts concluded that another reduction in interest rates is on the way.
The dollar found support in its recent lows and now all eyes are on whether 0.7170 will resist or level will be breached.