- 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
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
AUD/USD consolidates gains above 0.6500 after Australian PPI data
AUD/USD is consolidating gains above 0.6500 in Asian trading on Friday. The pair capitalizes on an annual increase in Australian PPI data. Meanwhile, a softer US Dollar and improving market mood also underpin the Aussie ahead of the US PCE inflation data.
Gold price keeps its range around $2,330, awaits US PCE data
Gold price is consolidating Thursday's rebound early Friday. Gold price jumped after US GDP figures for the first quarter of 2024 missed estimates, increasing speculation that the Fed could lower borrowing costs. Focus shifts to US PCE inflation on Friday.
Stripe looks to bring back crypto payments as stablecoin market cap hits all-time high
Stripe announced on Thursday that it would add support for USDC stablecoin, as the stablecoin market exploded in March, according to reports by Cryptocompare.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.