- RBA’s Lowe shows readiness to cut the rates further before the House of Representatives.
- AUD/USD buyers emphasize the absence of dovish statements, comments on Inflation.
With the RBA’s Governor expecting a pick-up in Aussie inflation, the AUD/USD pair surges to an intra-day high of 0.6816 during early Friday.
The Reserve Bank of Australia (RBA) Governor Philip Lowe appears for testimony before the House of Representatives’ Standing Committee on Economics.
His initial comments showed the Aussie central bank’s readiness to cut the rates further if needed to meet inflation and employment targets. However, Mr. Lowe also mentioned that the inflation is likely to pick-up; though a bit later than previously anticipated.
Read more: RBA Lowe speaks before the House of Representatives: Says its reasonable to expect a period of low rates.
While the testimony is likely to run for a few more hours, traders considered taking long positions of the pair considering the initial absence of dovish statement and no signal for fresh rate cuts in the next meeting.
In addition to the on-going focus on RBA’s Lowe, the quarterly monetary policy statement from the central bank and China’s inflation data will also be the key for Aussie traders to watch.
Technical Analysis
The quote is yet to cross May month low of 0.6862 without which 0.6750/45, 0.6700 and 0.6677 could keep flashing on sellers’ radar.
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