Positive attitudes to AUD are likely to remain after the speech by Philip Lowe, Reserve Bank of Australia (RBA) Governor. Lowe said the next interest rate move would be in the upward direction. Expected, given the positive rumors about the trade war, the RBA Governor presented the central bank as optimistic about the country's economy. AUD has seen slight upsurge, as traders will track the slump in the US-China Trade War.
Here are the highlights of Lowe's statement
- The next move of the bank in terms of interest will be an increase
- Australia will make further progress in terms of inflation and unemployment
- We still have concerns about world trade pressure
- The RBA will maintain its current monetary policy until it sees inflation growth, a fall in unemployment and an improvement in US-China relations.
- The increase in salaries will be extremely smooth
- The Australian economy has done very well in the first half, despite the risks of trade strain
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
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