AUD is on the move as the USD weaknes in Asia and Reserve Bank of Australia says not overly concerned about level of A$ and that it is not far from fundamentals.
- Reserve Bank of Australia assistant gov Kent says short end of yield curve has a close correlation to the A$.
- Says watching three-year yields closely, would buy more if yields move away from 25 bps.
- Says negative rates would not be helpful in current circumstances.
- Says negative rates would hurt bank profitability.
- Says new monetary policy measures would come with costs.
- Says new policy measures not under consideration.
- Says room for further growth in RBA balance sheet.
- Says A$ is not far from fundamentals.
- Says not overly concerned about level of A$.
These comments over the currency are the sorts the markets were looking for and will go along way to underpinning the currency vs the US dollar in decline.
The currency is printing fresh highs for the session to 0.7122 as the DXY sinks 0.25%.
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.