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.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD: Gains appear capped near 0.6580
AUD/USD made a sharp U-turn on Tuesday, reversing six consecutive sessions of gains and tumbling to multi-day lows near 0.6480 on the back of the robust bounce in the Greenback.
EUR/USD tumbles out of recent range, tests below 1.0770 as markets flee into safe havens
EUR/USD slid below the 1.0670 level on Tuesday after an unexpected uptick in US wages growth reignited fears of sticky inflation, chopping down rate cut expectations and sending investors into safe haven bids.
Gold pullbacks on rising US yields, buoyant US Dollar as inflation heats up
Gold prices drop below the $2,300 threshold on Tuesday as data from the United States show that employment costs are rising, thus putting upward pressure on inflation. XAU/USD trades at $2,296 amid rising US Treasury bond yields and a stronger US Dollar.
Ethereum slumps again as long liquidations exceed those of Bitcoin
Ethereum experienced a further decline on Tuesday following a disappointing first-day trading volume for Hong Kong's spot Bitcoin and ETH ETFs. This comes off the back of increased long liquidations and mixed whale activity surrounding the top altcoin.
No tap dancing around inflation concerns
Tuesday saw U.S. stocks closing considerably lower as investors grappled with economic indicators indicating increasing labour costs and a decline in consumer confidence, all coming ahead of a crucial Fed policy meeting aimed at determining the trajectory of interest rates.