The dollar made the bearish break to new lows for the year last Monday, but it was not catalyzed by any specific fundamental driver nor supported by a

The Australian dollar will see the first of the four central bank decisions we'll see this week at 00:30 ET, but the currency's reaction will have more to do with what the Reserve Bank of Australia (RBA) says, rather than what they do.
The US dollar, euro, British pound, Australian dollar, and Canadian dollar all face very high event risk this week due to employment reports and a total of four rate decisions. Among the central banks that are meeting, including the RBA, BOE, ECB, and BOC, none are expected to reduce rates, but there is still the question of their policy bias going forward, especially when it comes to credit and quantitative easing. • Reserve Bank of Australia (RBA) Rate Decision – June 2The Reserve Bank of Australia is anticipated to leave their cash rate target unchanged at 00:30 ET on Tuesday for the second straight month at 3.00 percent, and the Australian dollar may only respond to a surprise rate cut or a biased monetary policy statement. After the central bank’s last meeting, RBA Governor Glenn Stevens said that future rate cuts would be based on “how economic and financial conditions unfold, and how they impinge on prospects for a sustainable recovery in economic activity.” As a result, it will be important to look to Stevens’ statement, as signs that the economy or financial markets are not holding up strongly enough for the RBA’s liking may suggest that the central bank will consider cutting the cash rate target again, and this news could weigh on the Australian dollar. On the other hand, indications of a broadly neutral bias and comments suggesting that 3.00 percent is essentially the floor for the cash rate target could support the currency.