RBA minutes the feature of an otherwise fairly empty data agenda ahead.
2330 GMT Australia ANZ/Roy Morgan weekly consumer confidence survey, prior 86.5
0130 GMT Reserve Bank of Australia minutes of the August meeting
The minutes are a little dated given RBA Governor Lowe's 3 hour testimony to a parliamentary committee on Friday last week. For the posts on this check out the info and links here.
As a summary of what Lowe had to say:
- economic recovery is dependent on COVID-19 developments (the outbreak and response in Victoria has delayed national recovery)
sees the unemployment rate rising to 10% by the end of 2020 and a gradual fall thereafter
has not ruled out a further bond buying program
monetary financing of the government debt is not on the agenda
the rise in public debt is manageable
the RBA will do what it can, more if necessary, but more fiscal support is needed
On the Australian dollar:
would like it to be lower
cannot say it is overvalued at present
its no surprise the AUD is where it is, he does not have the tools to get it lower
And more on that last point:
would need huge amounts of intervention to push the AUD down
doubt the RBA can do that
intervention would not be a successful strategy at presentations
