The Australian dollar just dipped again in afternoon trade following dovish comments from RBA board member Ian Harper.
Harper told the Wall Street Journal that the RBA remains concerned about low wage growth, and said Australia’s economic recovery had been “painfully slow“.
Currency markets responded by sending the AUD as low as 0.7744 against the greenback. That followed another fall in global markets, with the AUD closing overnight trade below US78 cents for the first time since July.
Here are the moves in the Aussie this afternoon:
Harper’s comments served to fuel speculation that the RBA is in no rush to raise rates, despite recent moves in market pricing which had brought forward the timing of next rate hike to the middle of next year.
His comments stand in contrast to an article published earlier this week by former RBA board member John Edwards.
In a blog published on the website of policy think-tank the Lowy Institute, Edwards said the RBA mayy look to raise rates even if inflation doesn’t return to the bank’s 2-3% target range.