- AUD/USD retains bid, trades 0.3% higher at 0.7314.
- RBA’s Deputy Governor says rate hikes unlikely for three years.
The AUD/USD pair shrugs off dovish comments by a Reserve Bank of Australia (RBA) official and continues to trade at session highs above 0.73.
RBA’s Debelle was out on the wires a few minutes before press time, stating that the central bank is unlikely to raise rates for three years and bond purchases need to continue as Australia’s 10-year government bond yields are still higher than its peers.
Other key quotes
- Must be careful not to remove policy stimulus too early
- Australia’s government debt is very manageable
- A materially lower jobless rate needed to lift wages, inflation
- says banks have strong balance sheets to support the economy into recovery
- The average mortgage interest rate paid by households to decline further
- News about vaccines should help bolster confidence
The central bank has reiterated time, and again that policy normalization is at least a few years away. As such, Debelle’s dovish comments are not surprising and have failed to influence the pair.
The AUD/USD pair picked up a bid below 0.7290 early Tuesday and is currently trading at 0.7314, representing a 0.3% gain on the day.
Australia reported preliminary trade numbers for October, showing a 6% month-on-month rise in exports and an 8% increase in imports. The trade surplus narrowed to AUD 4,840 million versus AUD 5,630 million in September.
Technical levels
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