0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • Upcoming UK GDP data could stoke FTSE 100 volatility as the index bleeds lower. Get your #FTSE market update from @PeterHanksFX here:https://t.co/4k21NHRiZt https://t.co/fOq2QzSZt5
  • Today's webinar 1. Gold pullback, looks like that bearish engulf from Friday did its work. 2. USD in range, but may be due for a stronger push as it approaches resistance. 3. Reversal scenarios in $USD, $AUD, $Euro and $NZD archive available now: https://t.co/wNs11Tux8M https://t.co/P3fiyo3KLv
  • A continued rise in US yields may see the Fed pick the Jackson Hole Symposium (as opposed to waiting until Sep meeting) to enlighten market participants on their monetary policy strategy review https://t.co/B5O4vcm8CF
  • I personally don't buy into the risk-on sparking a pullback in gold theme considering PMs have been moving in tandem with stocks for months Yields (real yields) have been the main driver for the PM complex https://t.co/rVZXTff93U
  • Today's webinar archived and ready to go -> https://t.co/wNs11Tux8M https://t.co/P3fiyo3KLv
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.23% Gold: -5.47% Silver: -13.52% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/Nggu2Z5njd
  • Gold rally faces a reality check as US yields surge with 30yrs rising as much as 10bps Largest drop in gold in past decade - Aug 11, 2020: -5.5% (Currently) - Jun 20, 2013: -5.43% - Apr 13, 2013: -8.5% https://t.co/bxI6zKpzh1
  • The trio of central banks associated with the Australian, Canadian, and New Zealand Dollars remain in a holding pattern, even as global growth conditions improve, particularly in Asia and Europe. Get your market update from @CVecchioFX here: https://t.co/FBAMsPoEE0 https://t.co/Qz3Yugq1Kz
  • Australian Dollar Price Forecast: AUD/USD Threatens Reversal https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2020/08/11/Australian-Dollar-Price-Forecast-JS-Aussie-AUDUSD-AUD-USD-Threatens-Reversal.html https://t.co/lZtZoUmW1T
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.17%, while traders in Wall Street are at opposite extremes with 74.60%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/rvvFLo185X
RBA's Lowe Doubts More Rate Cuts Are The Answer

RBA's Lowe Doubts More Rate Cuts Are The Answer

2017-02-22 00:50:00
David Cottle, Analyst
Share:

Talking Points

  • Like many central bank governors, Philip Lowe seems keen to emphasize that monetary policy has already done a lot of the heavy lifting
  • He also worried about household debt levels
  • However, he denied that low inflation expectations were becoming entrenched

Reserve Bank of Australia Governor Philip Lowe reportedly said on Wednesday that more interest-rate cuts (from current record lows) were not the most sensible answer for the economy.

Lowe was responding to questions after a speech he gave in Sydney at an Australia/Canada business forum.

In the speech, he denied that the RBA’s 2-3% inflation target was under threat of a long undershoot, but worried aloud about household debt levels. Lowe reportedly said that some households face a “sobering” mix of high debt and low wage growth which will drag on spending. He also worried that this could mean that inflation expectations adjust lower.

“If inflation is low for a long period of time, it is certainly possible that inflation expectations adjust, making it harder to achieve the objective,” Lowe reportedly said. He added that he did not see a particularly high risk of this in Australia at this time.

Lowe also said that the RBA was “balancing multiple objectives.” It would like to see the economy grow a bit more, but that to do so via monetary policy alone would encourage more borrowing and more upward pressure on housing prices.

“I don’t think those are in the national interest,” he reportedly said.

Lowe also went in to bat for free trade and open economies.

"Too often these days, a commitment to open international trade, integration into global capital markets, a strong role for markets and a dynamic financial sector are seen as liabilities, not as assets."

"Australia and Canada provide strong counter examples. We show that openness can deliver both prosperity and resilience.

The Australian Dollar didn’t react much to Lowe’s words, which came very early in the Asia/Pacific trading session. AUD/USD slipped a little, but remains well within the week’s range.

Down but not by much: AUD/USD

RBA's Lowe Doubts More Rate Cuts Are The Answer

Chart Compiled Using TradingView

His response to the question in further rate cuts in any case chimes with the prevalent market view that while Australian rates may not rise anytime soon, they’re not going any lower either.

Get live coverage of major, market-moving events with the DailyFX webinars.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.