26 Nov 2013
AUD/USD: Aussie dollar strengthens as RBA deputy governor plays down intervention odds
FXstreet.com (London) - The Aussie dollar was pushed higher overnight on comments from Reserve Bank of Australia deputy governor Philip Lowe.
Speaking in Sydney, Lowe said that Australian businesses need to boost efficiency to maintain growth in living standards.
The move higher came from responses to a Q&A question on central bank intervention in the currency, something that RBA governor Glenn Stevens last week said couldn’t be ruled out, pushing the Aussie dollar lower.
“We don’t rule intervention in or out, that’s been a long-standing practice,” said Lowe in response to the question. “In the past, we have been prepared to intervene in the currency market when it’s clear the currency was misaligned or the market wasn’t working well. The threshold for intervention though is fairly high.”
Though it has fallen 20 percent since the start of the year, concerns remain over the strength of the Aussie dollar and its effects on Australian commodity exports.
AUD/USD is up 0.23 percent to USD0.9189.
Speaking in Sydney, Lowe said that Australian businesses need to boost efficiency to maintain growth in living standards.
The move higher came from responses to a Q&A question on central bank intervention in the currency, something that RBA governor Glenn Stevens last week said couldn’t be ruled out, pushing the Aussie dollar lower.
“We don’t rule intervention in or out, that’s been a long-standing practice,” said Lowe in response to the question. “In the past, we have been prepared to intervene in the currency market when it’s clear the currency was misaligned or the market wasn’t working well. The threshold for intervention though is fairly high.”
Though it has fallen 20 percent since the start of the year, concerns remain over the strength of the Aussie dollar and its effects on Australian commodity exports.
AUD/USD is up 0.23 percent to USD0.9189.