Never miss a story from David Cottle

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to David Cottle

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Talking Points:

  • AUD/USD slipped in the Asia/Pacific afternoon
  • Its fall came after RBA Governor Lowe spoke in Perth
  • His speech had little new to offer but he did question the link between overseas interest rates and Australia’s

What have some traders got that all wish they have? Check out DailyFX’s long look at the Traits Of Successful Traders

The Australian Dollar was lower against its US cousin Thursday following a speech from Reserve Bank of Australia Governor Philip Lowe.

Speaking in Perth, Western Australia, Lowe stuck mainly to a precis of post-crisis economics, both globally and in Australia, in a speech which didn’t obviously offer very much for either Aussie dollar bulls or bears. However, the phrase which seems to have done the damage came when Lowe hinted that interest rate rises elsewhere in the world had no “automatic implications” for Australian monetary policy. He also said that higher global rates would in time probably filter through to Australia, but this caveat seemed to have been either lost on traders or ignored.

AUD/USD slipped below the psychologically important 0.80 level following his remarks.

AUD/USD Skids, RBA Lowe Underplays Foreign Rate Influences

However the currency remains very well supported more broadly, having retreated very little from this week’s new 2017 peak, which is also the highest point in more than two years.

AUD/USD Skids, RBA Lowe Underplays Foreign Rate Influences

The RBA has in the recent past been scrupulous in airing its worries about the effects of a too-strong Aussie Dollar. However that rhetoric has been toned down more recently still, possibly in recognition of the fact that the “USD” side of AUD/USD has been very much in the driving seat, and that RBA influence over the pair while that remains the case is necessarily limited.

Away from the Australian Dollar, Lowe reportedly responded to questioning by calling cryptocurrencies "very much a speculative play" with no immediate monetary policy implications.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX