FX Strategists at UOB Group assessed the recent statement from the RBA and its impact on AUD.
“AUD fell against its major peers as RBA’s Governor Philip Lowe presented a speech”.
“The central bank head stated that the board has been prepared to be patient on the economy, likely hinting that an interest rate adjustment won’t be due for some time yet”.
“Lowe added that he prefers a prudent approach, and reiterated that the current cash rate of 1.5% is supporting jobs growth and a return to average inflation”.
“Once again, the Governor expressed his concern about AUD strength noting that further AUD gains would slow an inflation and employment pickup”.
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