AUD/USD drops and pops on RBA's Lowe's remarks on unorthodox policy
|- AUD/USD dropped to 0.6789 after RBA's Lowe said the bank is ready to do unconventional policy.
- Lowe said the central bank is hoping to avoid hitting the zero lower bound, helping the AUD rise back to session highs.
AUD/USD fell from 0.6812 to 0.6789 in five minutes to 00:30 GMT in response to dovish comments by Reserve Bank of Australia's Governor Lowe.
"The central bank is prepared to do unconventional policy if required," Lowe said while testifying before the House of Representatives' Standing Committee on Economics.
Lowe added further that Australian interest rates may hit the zero lower bound, although the central bank wants to avoid doing that.
The final comment likely put a bid under the AUD, pushing the pair back to session highs above 0.6810.
As of writing, the pair is trading at 0.6812. A bullish hammer reversal pattern created in the previous two days indicates the path of least resistance is tot he higher side.
The bullish setup, however, would fail if China's producer price inflation, due in a few minutes, prints well below estimates. The AUD will also take cues from the RBA's statement of monetary policy, scheduled for release at 01:30 GMT.
Pivot points
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.