RBA’s Lowe: Keeping interest rates low promotes confidence

Comments crossed the wires from the Reserve Bank of Australia (RBA) Phillip Lowe, via Reuters, as he spoke about China's economy, financial system, and the implications for Australia at the Australia-China Relations Institute, in Sydney.

Key Headlines:

Among the largest economic risks to Australia is something going wrong in China.

The single biggest risk to China lies in its financial sector.

RBA currently holds 5% of its foreign currency reserves in Yuan.

Important to avoid escalating political issues with China.

We need mechanisms for de-escalation.

Keeping interest rates low promotes confidence.

Australia won't be affected if China buys more from the US

Meanwhile, the AUD/USD pair remains heavily offered near 0.7535 levels, having stalled its rebound from two-day lows.