RBA Kent's comments finally send AUD/USD through support

Ross J Burland FXStreet

The Reserve Bank of Australia's Dr. Chris Kent has been speaking with comments trickling through.

RBA’s Kent: Expansion of balance sheet adding monetary stimulus

The latest round of comments has been more prominent in terms of the currency market due to the easing bias and rhetoric.

Dr Kent's comments were eagerly watched after Thursday's game-changing speech by governor Phil Lowe.

The market has been leaning more to the downside following Lowe's comments when he said more easing would be required to support the economy while dropping a strong hint that the central bank could begin buying long term government bonds

Meanwhile, in the latest round of comments, Kent has confirmed that there is some room to cut cash rate further, although he said that they cannot speculate on details of easing.

However, he said that one option is to buy longer-dated bonds, while they would bond be regular and aimed to bring down yields.

He stressed that the board is considering case for further easing although explained that the RBA has not conducted a formal policy framework review.

AUD/USD technical analysis

More to come...

Meanwhile, the market is getting set for the next major event for AUD today:

When are the RBA minutes and how might they affect AUD/USD?

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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