Monetary easing abroad puts upward pressure on AUD – RBA’s Lowe

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    Reserve Bank of Australia’s (RBA) Deputy Governor Philip Lowe crossed the wires today via Reuters, commenting on the economic outlook and exchange rate level.

    Key Quotes:

    Low inflation provides scope for easing if needed

    Will be important for economy to keep up with growth in labour force

    Signs economy successfully rebalancing, even if not returning to pre-2008 growth rates

    Economic growth bit stronger than expected over 2015, kept unemployment steady

    GDP report confirmed household spending had picked up

    Central scenario still for GDP growth a bit below trend in 2016, then quickening

    Rising home supply helping moderate prices, still watching very closely

    Monetary easing abroad a "complication" as it puts upward pressure on AUD

    Past fall in A$ helping tourism, education, agriculture

    Looking around world most every Central Bank would like a lower currency

    Global economy still has momentum, though data mixed

    Growth this yr will likely bit below trend;2.5% to 3%

    China going through difficult transition

    Watching what international developments mean for us

    Recent intl data do not suggest global econ momentum lost
    For more information, read our latest forex news.

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