The Australian dollar gained on its most-traded peers today even after Philip Lowe, Reserve Bank of Australia Governor, signaled that he sees no reason for hiking interest rates in the near future.
Lowe predicted that the next move in interest rates will likely be hike, not cut:
It is more likely that the next move in interest rates here will be up rather than down.
Yet the economy seemed to be not robust enough to start monetary tightening just yet:
The timing of any future move will depend upon the extent and pace of the progress that we make in reducing the unemployment rate and having inflation returned to target. As things currently stand, we expect that progress to be steady but to be only gradual.
As a result, the Governor concluded:
Given this assessment, the Reserve Bank board does not see a strong case for a near-term adjustment of monetary policy.
AUD/USD gained from 0.7944 to 0.7960 as of 11:37 GMT today, reaching the daily high of 0.7988. AUD/JPY advanced from 84.30 to 84.49, bouncing from the daily low of 84.06.
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