The RBA Governor considered cutting interest rates at June policy meeting. Risk events and trade news could offer near-term direction.
The AUD/USD pair dropped to the day’s low near 0.6890 after Governor of the Reserve Bank of Australia (RBA) favored rate cut in his speech at the Economic Society of Australia Business Lunch, in Brisbane during early Tuesday.
Mr. Lowe also conveyed bearish bias for the labor market and growth data.
The pair recently witnessed pullback as minutes of the RBA’s May 07 minutes failed to include a statement that mentions near-term neutral policy bias by the central bank.
The minute statement also emphasized employment data to be a signal for the next policy moves.
The latest labor market data from Australia has been negative and indicates a rate-cut from the Aussie central bank even if it avoided the same in its latest minutes.