RBA’s Lowe: Doing what we can on unemployment, up to government on fiscal policy

More comments are crossing the wires from the Reserve Bank of Australia (RBA) Governor Lowe, as he now addresses the Q&A session following his speech.

Clear average temperatures rising, will have economic impact on Australia.

Australia has very high participation rate, unemployment not only rate to watch.

Doing what we can on unemployment, up to government on fiscal policy.

Have to be realistic on speed of progress on unemployment rate.

Seeing some additional govt spending because of bushfires.

Benefits right now do not outweigh risks, could change.

If unemployment moving in wrong direction balance would change, no timeframe.

Possible rates could come down but hoping that would not happen.

Hoping for a period of stability, see reasonable chance.

If do not see progress on unemployment and inflation a rate cut would be a risk.

Would be surprised to see negative GDP in this quarter.

Rate cuts have worked to lower A$.

Would not like to see low rates encourage another borrowing boom.

Getting closer to crossing point where low rates become a risk.

AUD/USD holds the higher ground

The bid tone around AUD remains intact, as markets cheer the upbeat comments from Lowe on the economy while poor Chinese Services PMI data did little to affect the Chinese proxy.

At the press time, AUD/USD trades at 0.6740, having hit a daily high of 0.6746 and a low of 0.6724 in the last hour.

• RBA Lowe says economy still passing through “gentle turning point” for the better