RBA Lowe: Would like the AUD lower, but it is not overvalued

The Reserve Bank of Australia’s governor, Philip governor Lowe has said he would like the AUD lower but it is not overvalued.

It is the Parliament’s Economic Committee where a half-yearly update is being given with a prepared statement. 

Regardless of the comments, which, in effect, is a repeat of recent rhetoric with regards to the value of the currency, AUD is still under pressure.

Meanwhile, traders are focussed on the damage done by lockdowns which were clear in the number of unemployed which topped 1 million for the first time ever while employment was still 500,000 below its March level.

The latest health restrictions in Victoria will not kick in fully until next months data and the Employment is likely to fall back in August..

The Aussie can remain anchored considering the central bank has stepped up its bond-buying, taking A$5 billion ($3.59 billion) just this week after two months of no purchases at all.  

AUD/USD longer term focus