AUD/USD runs into offers as RBA’s Debelle says intervention is a policy option. A weaker AUD would be beneficial for Australia’s economy, Debelle added. Sustained risk aversion in global equities could yield a deeper decline in the AUD. The offered tone around the Australian dollar strengthened on Tuesday, pushing AUD/USD lower from 0.7235 to 0.7205 after Reserve Bank of Australia’s (RBA) deputy governor Guy Debelle said a weaker Aussie dollar would bode well for the Australia economy. “The board is watching developments in the forex markets closely, and while intervention may not be effective as the AUD is broadly aligned with fundamentals, a lower exchange rate would definitely be beneficial for the economy,” Debelle said. The policymaker added that intervention is a policy option, and the bank could buy bonds further out along the curve to lower rates at longer maturities. Debelle mentioned lower cash rates and negative rates as other options and added that the economy is currently seeing a gradual and uneven recovery. The policymaker’s comment on the intervention being an option isn’t surprising, given the AUD/USD pair has rallied by over 1,700 pips over the past six months. However, as noted earlier, the central bank believes the exchange rate is aligned with fundamentals. As such, the bank is unlikely to go beyond occasional jawboning any time soon. However, the pair could suffer a deeper drop during the day ahead if the risk aversion worsens. Global equities fell on Monday, pushing the US dollar higher across the board as a resurgence of coronavirus cases across Europe and other parts of the world threatened to derail the nascent economic recovery. Technical levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next AUD/JPY declines to 75.50 as RBA’s Debelle speaks dovish FX Street 2 years AUD/USD runs into offers as RBA's Debelle says intervention is a policy option. A weaker AUD would be beneficial for Australia's economy, Debelle added. Sustained risk aversion in global equities could yield a deeper decline in the AUD. The offered tone around the Australian dollar strengthened on Tuesday, pushing AUD/USD lower from 0.7235 to 0.7205 after Reserve Bank of Australia's (RBA) deputy governor Guy Debelle said a weaker Aussie dollar would bode well for the Australia economy. "The board is watching developments in the forex markets closely, and while intervention may not be effective as the AUD is broadly aligned… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.