Aussie Drops as Rate-Cut Bets Survive Stevens’s Flexibility Talk

The Australian dollar had its biggest drop in almost a week after comments from central bank governor Glenn Stevens did little to diminish expectations for further policy easing.

The Aussie slid versus 14 of its 16 major peers as Stevens said that the Reserve Bank’s inflation target was not rigid, but provided sufficient flexibility for sound decision-making. He also supported the current framework of targeting price increases in a band of 2 percent to 3 percent.