According to this IGN report, Microsoft has confirmed and Xbox 360 price cut in Australia.
The Arcade has dropped from AU$399 to AU$349; the Xbox 360 Pro (20GB hard drive and headset) is now AU$499 (previously AU$579); and the Elite (120GB hard drive, headset and HDMI cable) is now AU$649 (previously Au$729).
Microsoft has reasoned that the drop has nothing to do with competition and is instead about passing on savings to the consumer.
Obviously, this bodes well for an imminent US price cut, as has been heavily rumoured in recent weeks.
More through the link.