
The Aussie has seen another weak US session and is currently pushing towards its recent lows.
Today, the focus remains on the RBA as we are hearing from Debelle and Governor Lowe. Debelle has spoken already this morning and talked about the state of jobs in Australia.
He believes wage growth will steadily increase and that he and the RBA really need to see unemployment fall to 4.5%. This is not breaking news by any stretch and it has been something the RBA has been eying for many months.
Later today, he will be speaking again as will Governor Lowe and there is some hope that we will be able to get some clues as to what is next for monetary policy.
The belief is now that we will see a further rate cut which will likely come in February 2020.
Last night, the AUD/USD broke down to the lows of 0.6770 or thereabouts, but there wasn’t enough selling pressure to hit any stops and push it lower. So for the time being, that is a little bullish.
But when we hear from Lowe, there could be fireworks if he hints at a dovish tone going forward.
At the same time, we are also seeing a bit of a bid in the USD at the moment which is pressuring most of the Asian pairs. The NZD/USD is also soft this morning and that is despite a relatively upbeat retail sales number.
So that is suggesting there is a bit of risk-off around and Greenback buying.
So the main focus this morning will be to watch that key support level, because if that drops we could see selling all the way down to 0.6700.
