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  • AUD/USD continues to trade in the red despite upbeat comments by RBA’s Lowe. 
  • The central bank head said the economy is passing through a gentle turning point. 
  • Lowe downplayed fears of a deeper slowdown due to bush fires and coronavirus. 

AUD/USD continues to trade in the red despite Reserve Bank of Australia’s governor reiterating the message that the economy is passing through a “gentle
turning point”. 

The governor was out on the wires soon before press time board continues to discuss merits of further monetary stimulus and the case for easing would strengthen if the jobless rate rises and inflation stays low. 

Further, Lowedownplayed the fears of a prolonged slowdown due to coronavirus scare and bushfires and said that recent inflation, jobs data show things are gradually moving in the right direction. 

All in all, Lowe’s comments were anything but bearish on the economy. So far, however, the AUD has failed to pick up a bid, possibly because the governor’s take on the economy was largely in line with the message delivered by Tuesday’s RBA rate decision and policy statement. 

At press time, the AUD/USD pair is trading in the red near 0.6730, having found offers at 0.6743 in early Asia. The pair jumped from 0.6679 to 0.6742 on Tuesday after the RBA left rates unchanged at 0.75%. 

The AUD may reverse losses seen at press time if the China Caixin Services PMI, due at 01:45 GMT, blows past expectations. 

Technical levels