AUD/USD recaptures 0.7300 even as RBA’s Lowe says now is not the time for higher rates
“Now is not the time for higher interest rates, the Reserve Bank of Australia (RBA) Governor Phillip Lowe said while delivering a speech titled "Covid, Our Changing Economy and Monetary Policy" at a webinar hosted by the Committee for Economic Development of Australia.
Additional quotes
Fall in global interest rates had 'gravitational pull' on Australian rates.
Resisting that 'pull' would have put upward pressure on Australian dollar.
Could have rapid rebound if we get further good news on the health front
Pandemic will likely leave an extended period of higher unemployment.
Challenge ahead more likely to be creation of jobs, than controlling inflation pressures.
Australians have reacted sensibly and worked together to contain the virus.
Recent local data better than expected, easing of restrictions lifted spirits.
We are now on the road to an economic recovery.
QE to affect capital flows, exchange rate and asset prices.
AUD/USD reaction
As risk-on mood intensifies in the European session, the US dollar loses further ground against its major rivals, pushing AUD/USD back above 0.7300.
The spot, therefore, shrugged-off the comments from Governor Lowe.
At the time of writing, the aussie rises 0.45% on a daily basis, sitting at four-day tops of 0.7305.
AUD/USD key levels
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
