AUD/USD keeps gains even as RBA's Debelle says rate hike unlikely
- AUD/USD retains bid, trades 0.3% higher at 0.7314.
- RBA's Deputy Governor says rate hikes unlikely for three years.
The AUD/USD pair shrugs off dovish comments by a Reserve Bank of Australia (RBA) official and continues to trade at session highs above 0.73.
RBA's Debelle was out on the wires a few minutes before press time, stating that the central bank is unlikely to raise rates for three years and bond purchases need to continue as Australia's 10-year government bond yields are still higher than its peers.
Other key quotes
- Must be careful not to remove policy stimulus too early
- Australia's government debt is very manageable
- A materially lower jobless rate needed to lift wages, inflation
- says banks have strong balance sheets to support the economy into recovery
- The average mortgage interest rate paid by households to decline further
- News about vaccines should help bolster confidence
The central bank has reiterated time, and again that policy normalization is at least a few years away. As such, Debelle's dovish comments are not surprising and have failed to influence the pair.
The AUD/USD pair picked up a bid below 0.7290 early Tuesday and is currently trading at 0.7314, representing a 0.3% gain on the day.
Australia reported preliminary trade numbers for October, showing a 6% month-on-month rise in exports and an 8% increase in imports. The trade surplus narrowed to AUD 4,840 million versus AUD 5,630 million in September.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
