RBA’s Lowe: Liquidity in forex market thin but have not acted to intervene, Aussie extends the bounce

Dhwani Mehta FXStreet

The Reserve Bank of Australia (RBA) said that the lliquidity in the forex market is thin but they have not acted to intervene, as he continued to speak at the press conference on Thursday.

Additional quotes

A$ has been a great shock absorber for economy.

Prepared to act if necessary if market is one-sided.

4.5% still reasonable estimate of full employment, not see it for a while.

Have to steel ourselves for a rise in the unemployment rate.

AUD/USD extends the bounce

AUD/USD stages a solid comeback and tests the 0.57 handle, in response to the comments by the RBA Governor Lowe on the exchange rate and policy measures amid the coronavirus chaos.

The Aussie recovers from the lowest levels since 2002 reached at 0.5511 in early Asia, as it now trades at 0.5686, still down -1.50% on the day.

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.

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