The Reserve Bank of Australia Governor's comments were dovish, causing the Australian dollar to fall by about 0.3%, and the probability of a rate hike in August dropped from 32% to 19%.

(1) Kristina Clifton, a foreign exchange strategist at Commonwealth Bank of Australia, stated that the Australian dollar fell by about 0.3% during the Asian trading session, influenced by comments from Reserve Bank of Australia Governor Bullock. (2) Clifton pointed out that although Bullock left room for further interest rate hikes if necessary, she also mentioned that the economy is slowing as expected and that it will take time for the full effects of previous rate hikes to be felt. The market interprets her remarks as signaling a lower likelihood of a rate hike in the near term. (3) Currently, market pricing indicates about a 19% probability of a rate hike in August, down from about 32% before the speech, reflecting a reassessment by the market of Bullock’s dovish tone.