FOREX TradingCharts.com

Forex News: Australian Dollar Falls After RBA Lowe Suggests Further

Australian Dollar Falls After RBA Lowe Suggests Further Easing

07/25/2019 - 03:02:00 (RTTNews)

(RTTNews) - The Australian dollar declined against its major counterparts in the Asian session on Thursday, after Reserve Bank of Australia Governor Philip Lowe suggested that the central bank is prepared to cut rates further, if demand growth is not sufficient.

".if demand growth is not sufficient, the Board is prepared to provide additional support by easing monetary policy further," he said in a speech titled "Inflation Targeting and Economic Welfare" in Sydney.

It is reasonable to expect an extended period of low interest rates, Lowe added. It will be some time before inflation is comfortably back within the target range.

The board is strongly committed to bring inflation back to the target and continue delivering an average inflation between 2 and 3 percent.

The bank had reduced its benchmark rate in June and July, by 25 basis points each. This was the first back-to-back rate cut since mid-2012.

The governor said two rate cuts will support demand. Recent tax reductions, higher commodity prices, some stabilization in the housing market, ongoing investment in infrastructure and a lift in resource sector investment will also support the economy, he noted.

The bank expects these factors together with rate cuts to put pressure on the economy's supply capacity and lift inflation in a reasonable timeframe, Lowe said.

The aussie dropped to a 2-week low of 0.6964 against the greenback, from a high of 0.6984 seen at 9:30 pm ET. If the aussie slides further, 0.67 is likely seen as its next support level.

The aussie that ended Wednesday's trading at 75.47 against the yen depreciated to a 2-week low of 75.28. Next immediate support for the aussie is possibly seen around the 73.5 region.

Data from the Bank of Japan showed that Japan producer prices rose 0.7 percent on year in June - shy of expectations for 0.8 percent and down from the upwardly revised 0.9 percent gain in May.

On a monthly basis, producer prices eased 0.1 percent after sliding 0.2 percent in the previous month.

The Australian currency fell to a 1-week low of 1.5987 against the euro, compared to 1.5967 hit late New York Wednesday. The aussie is seen facing support around the 1.61 level.

The aussie pared gains to 1.0399 against the kiwi, from a high of 1.0419 it touched at 6:30 pm ET. The currency is likely to find support around the 1.025 level.

After an uptick to 0.9174 against the loonie at 9:30 pm ET, the aussie pulled back to hit a weekly low of 0.9147. The aussie is poised to find support around the 0.89 level.

Looking ahead, German Ifo business sentiment index for July is due in the European session.

The European Central Bank's interest rate decision is slated for release at 7:45 am ET. Economists expect the main refi rate to be kept at a record low of zero percent and the deposit rate at -0.40 percent.

The U.S. durable goods orders for June and weekly jobless claims for the week ended July 13 will be featured in the New York session.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2019 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


Euro Falls On ECB Stimulus Hopes (13 hr(s), 19 min(s), 26 sec(s) ago)
(RTTNews) - The euro declined against its major counterparts in the European session on Friday on ...Full Story»

Dollar Little Changed Following U.S. Housing Data (15 hr(s), 04 min(s), 26 sec(s) ago)
(RTTNews) - Following the release of U.S. housing starts and building permits for July at 8:30 am ...Full Story»

Dollar Mixed Ahead Of U.S. Housing Data (15 hr(s), 10 min(s), 26 sec(s) ago)
(RTTNews) - The U.S. housing starts and building permits for July are due at 8:30 am ET Friday. Ah ...Full Story»

U.S. Dollar Spikes Higher As Recession Worries Fade (16 hr(s), 25 min(s), 26 sec(s) ago)
(RTTNews) - The U.S. dollar was higher against its most major counterparts in the European session ...Full Story»

Euro Little Changed After Eurozone Trade Data (18 hr(s), 34 min(s), 26 sec(s) ago)
(RTTNews) - Following the release of Eurozone trade data for June at 5.00 am ET Friday, the euro c ...Full Story»

Euro Falls Ahead Of Eurozone Trade Data (18 hr(s), 40 min(s), 26 sec(s) ago)
(RTTNews) - At 5.00 am ET Friday, Eurostat is scheduled to release Eurozone external trade figures ...Full Story»

Canadian Dollar Advances As Oil Prices Rise (19 hr(s), 55 min(s), 26 sec(s) ago)
(RTTNews) - The Canadian dollar strengthened against its major counterparts in the Asian session o ...Full Story»

Dollar Little Changed After NAHB Housing Market Index (13 hr(s), 34 min(s), 26 sec(s) ago)
(RTTNews) - The National Association of Home Builders' housing market index for August has bee ...Full Story»

Search

FOREX NEWS

Euro Falls On ECB Stimulus Hopes

08/16/2019 - 10:20 AM (RTTNews)
(RTTNews) - The euro declined against its major counterparts in the European session on Friday on ...Full Story>>

Dollar Little Changed Following U.S. Housing Data

08/16/2019 - 08:34 AM (RTTNews)
(RTTNews) - Following the release of U.S. housing starts and building permits for July at 8:30 am ...Full Story>>

Dollar Mixed Ahead Of U.S. Housing Data

08/16/2019 - 08:28 AM (RTTNews)
(RTTNews) - The U.S. housing starts and building permits for July are due at 8:30 am ET Friday. Ah ...Full Story>>

U.S. Dollar Spikes Higher As Recession Worries Fade

08/16/2019 - 07:12 AM (RTTNews)
(RTTNews) - The U.S. dollar was higher against its most major counterparts in the European session ...Full Story>>

Euro Little Changed After Eurozone Trade Data

08/16/2019 - 05:04 AM (RTTNews)
(RTTNews) - Following the release of Eurozone trade data for June at 5.00 am ET Friday, the euro c ...Full Story>>
Copyright © 2019. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.