- RBA’s Lowe sees interest rates staying low for longer, expresses concerns regarding stagnant labor productivity.
- Lowe’s dovish comments bolstered the already bearish technical setup in the AUD/USD pair.
The AUD/USD pair hit a 12-day low of 0.7556 after the Reserve Bank of Australia (RBA) governor Lowe said any increase in the country’s official cash rates was still “some time away”.
Lowe expressed concerns regarding stagnant labor productivity despite continued strength in the labor market and reiterated that wage growth and consumer price inflation remains tepid.
The central bankers’ speech carried dovish tinge and that seems to have weighed over the Aussie dollar. The AUD/USD was already on the back foot courtesy of the bear flag breakdown and looks even weaker now post-Lowe’s dovish comments.
At press time, AUD/USD is trading at 0.7563.
AUD/USD Technical Levels
Resistance: 0.7584 (resistance on hourly chart), 0.7602 (50-hour MA + 10-day MA), and 0.7624 (previous day’s high).
Support: 0.7561 (June 8 low), 0.7544 (38.2% Fib R of May-June rally), 0.7513 (61.8% Fib R of May-June rally).
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