Aussie is mixed today following comments from the governor of the Reserve Bank of Australia. However, there is a good chance that the comments will send the Aussie a bit lower in the future, since he said outright that he expects the Australian dollar to head lower in the future.
Glenn Stevens, the governor of the Reserve Bank of Australia, said earlier today that the Aussie isn’t being properly supported by the economy, and that he thinks that a lower currency is the likely result of the situation.
The remarks from Stevens came as the RBA announced that it has left interest rates the same at 2.5 per cent. This is a record low, and the RBA hasn’t ruled out further interest rate cuts if the need for economic growth requires it. Indeed, the RBA continues to await signals from its largest trading partner, China, as well as for clues about what is likely to happen in the United States.
Aussie dropped against the greenback on the news, but has since recovered somewhat and is slightly higher. Overall, Australian dollar is mixed today.
At 14:27 GMT AUD/USD is up to 0.9492 from the open at 0.9480. EUR/AUD is up to 1.4505 from the open at 1.4500. GBP/AUD is down to 1.6922 from the open at 1.6928. AUD/JPY is up to 93.2400 from the open at 93.0750.
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