Going into the monetary policy meeting, A$ was trading near its 3 year lows because investors had been pricing in one more rate cut in 2014. According to the CFTC, there was also a significant amount of short positions in the Australian Dollar, so when the RBA said “on present indicators, the most prudent course is likely to be a period of stability in interest rates,” it immediately prompted short covering. For the first time in a number of months, the central bank also did not describe the Au…