Reserve Bank of Australia 'not completely' ruling out a cut says the Journal
Wall Street Journal cites:
- A slump in Australian retail sales in July and August is no cause for immediate alarm, but a response through interest rates could be warranted if consumption across the economy loses momentum entirely, according to central bank board member Ian Harper.
- Harper also pointed to positive economic data out recently, including employment and investment figures, his comments suggest the Reserve Bank of Australia will likely remain cautious for longer-than-expected
More:
- Economy is a little better, but it's all "painfully slow" (cites disappointing retail sales)
- The retail sales data indicates the economy is "not out of the woods"
- But still, cannot "jump the gun" on rates
- "You wouldn't want to snuff out anything" with a premature hike
AUD had a few points sliced off, back to its session low circa 0.7775 and just above 0.7780 as I update. It got hit after the retail sales data yesterday and slid just a little further overnight (much bigger slides overnight for EUR and GBP against the USD). While it should remain offered on rallies there is support for it around. At least ahead of the NFP - that's a wild card still to come.
