Investing.com - Financial Markets Worldwide
⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

Australian dollar slightly up ahead of RBA speech

ByFIBO Group
Published 11/18/2014, 02:18 AM
Updated 03/09/2019, 08:30 AM

The Australian dollar is trading around US87.17 cents at 5.20pm (AEDT) up from US87.07 cents yesterday as the Japanese government unexpectedly announced a second quarter contraction, technically pushing the country into recession. The economy contracted -1.6% year-on-year in the third quarter, against a consensus of 2.1% which sent the Yen reeling against most major currencies as fears grow the Japanese government may flood the country with economic stimulus.

Later today, the market will await the latest monetary policy speech from RBA governor Glen Stevens, following the latest minutes meeting from the bank. The tone of the speech will be closely monitored after recent comments by after RBA assistant governor Christopher Kent who said that intervention to cut the exchange rate was not off the table.

“We haven’t ruled it out,” Dr Kent noted.

“It’s still there as an option, if needed.” saying the dollar is “too high, relative to our fundamentals”.

In recent speeches, Governor Glen Stevens has mentioned “the Aussie dollar remains high by historical standards” and also made no secret that he would like to see the currency lower to give a much needed boost to the mining and export sectors which are feeling the pinch from the high dollar.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.