RBA’s Ellis: Recovery will be little stronger due to extension of job support packages

Dhwani Mehta FXStreet

Reserve Bank of Australia (RBA) Assistant Governor Ellis is once again on the wires now, via Reuters, responding to the Q&A session after her speech titled “The Economic Outlook”.

Key quotes

Recovery will be little stronger due to extension of job support packages.

Employment will now not decline as much as forecast.

Still a pretty weak outlooks given Victoria’s virus restrictions.

Forecasts assume a vaccine will not be fully distributed next year.

Need to get hold of virus to get a strong economy, it's not a trade off.

Board has not ruled out doing more.

Have not walked away from our inflation target.

May take longer than usual to get inflation back to target.

Inability of US to control virus is a worry.

Very worried virus will weigh on growth in US for some time yet.

AUD/USD keeps the red

Having retreated from 1.5-year highs, AUD/USD holds the lower ground around 0.7225, as markets digest the RBA comments while weighing in the latest US-China tensions.

S&P 500 Futures: Drop to lows after US Pres. Trump signs executive orders against WeChat, TikTok

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.

EUR/USD struggles to regain momentum in the low1.1600s

EUR/USD is giving some signs of life in the aftermath of two severe days of losses on Wednesday, reclaiming the 1.1600 hurdle and above on the back of the resurgence of a mild selling bias around the US Dollar. Moving forward, the usual US weekly Claims will take centre stage on Thursday ahead of Friday’s crucial NFP data.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.