Reserve Bank of Australia Governor Lowe spoke during London time Tuesday.
Giles had the info:
A few thoughts via BNZ:
- RBA Governor Lowe sounded more optimistic than the market expected
- He noted, "after having been through a soft patch, a gentle turning point has been reached" and he added "the fundamental factors underpinning the longer-term outlook for the Australian economy remain strong."
- he refused to be drawn on pricing for an October rate cut.
And, the bank adds on QE:
- In the Q&A he said that the Bank would consider QE in some circumstances, adding it was unlikely, but possible
On the AUD response:
- Following the speech, the market lost some conviction of another cut as soon as early October, with the probability falling from 80% to 60%. This moved helped support the AUD, which has made a few probes above 0.68 since the speech, overriding the negative vibe on US-China trade negotiations
RBA meet next week, Tuesday October 1. For me, a rate cut is still on the cards.