The comment is giving the aussie a bit more of a boost
- Low AUD has been a great shock absorber for the economy
- RBA prepared to act if necessary if the market is one-sided
- Need to steel ourselves for higher unemployment
- Inflation might pick up temporarily on AUD fall
AUD/USD moves a little higher from 0.5610 to 0.5640 levels on the back of the remark above but there doesn't seem to be much urgency to act just yet.
Lowe's Q&A session now comes to an end. In summary, low rates are here to stay and there are no limits to RBA QE but for now, large-scale purchases are off the table. And if the aussie declines too rapidly still, they may come into the picture.
All in all, no game changer whatsoever for the aussie. Again, no need to catch the falling knife when there is no change in sentiment and the near-term picture is still the same.
