Aussie Mixed After Lowe Talks About Interest Rate Cuts

The Australian dollar was mixed today, falling against some rivals and rising versus others. The Aussie remained vulnerable due to prospects for additional interest rate cuts from the Reserve Bank of Australia.
RBA Governor Philip Lowe said in a speech today that additional interest rate cuts are possible:

The most recent data – including the GDP and labour market data – do not suggest we are making any inroads into the economy’s spare capacity. Given this, the possibility of lower interest rates remains on the table. It is not unrealistic to expect a further reduction in the cash rate as the Board seeks to wind back spare capacity in the economy and deliver inflation outcomes in line with the medium-term target.

AUD/USD climbed from 0.6879 to 0.6924 as of 11:53 GMT today. EUR/AUD edged up from 1.6308 to 1.6326, though retreated from the session high of 1.6362.

If you have any questions, comments, or opinions regarding the Australian Dollar, feel free to post them using the commentary form below.

Leave a Reply

Your email address will not be published. Required fields are marked *