Australian Dollar Falls After RBA Debelle's Comments
August 26 2019 - 11:44PM
RTTF2
The Australian dollar declined against its major counterparts in
the Asian session on Tuesday, after the Reserve Bank of Australia
Deputy Governor Guy Debelle remarked that the depreciation of the
domestic currency could serve as a shock absorber in crisis.
Speaking to the Economic Society of Australia in Canberra,
Debelle remarked that the US-China trade war constituted a
"significant risk" to the economy.
Debelle said Australia has been a major beneficiary of the
global rules-based trading system.
"The current threats to the system are a significant risk to
both Australia and the world," he said.
He added that Australia's central bank would examine
unconventional monetary options if the cash rate was slashed to 0.5
percent, but such policy adjustments may not be needed at
present.
The aussie declined to 0.6748 against the greenback, from a high
of 0.6780 hit at 6:15 pm ET. If the aussie falls further, 0.64 is
seen as its next support level.
The aussie fell to 1.6465 against the euro and 0.8931 against
the loonie, from its early highs of 1.6373 and 0.8985,
respectively. The aussie is likely to face support around 1.68
against the euro and 0.88 against the loonie. Reversing from a high
of 71.93 hit at 6:00 pm ET, the aussie edged down to 71.27 against
the yen. The aussie is seen finding support around the 0.69
level.
The aussie held steady against the kiwi, after climbing a 5-day
high of 1.0617 at 12:45 am ET. The pair ended Monday's trading at
1.0592.
Looking ahead, U.K. mortgage approvals for July are due in the
European session.
In the New York session, U.S. consumer sentiment index for
August, S&P/Case-Shiller home price index and Federal Housing
Finance Agency's house price index for June will be featured.
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