Today we heard from the RBA’s assistant Governor Low and it wasn’t good news if you’re looking for a rate hike in the AUD/USD any time soon.

As usual, Low was towing the party line and keeping things pretty vague.

Some of the key points that we saw were:

• RBA still worried about weak employment and sluggish inflation
• Next move in rates will be up
• He would like to see a lower AUD as that would be helpful to the Aussie economy

The AUD/USD has been particularly weak over the last few days (even months we could say). The next rate hike is looking at being in 2020 now which is a fair way away. So I suspect we are going to be seeing more of the same with the USD outpacing the old AUD.

RBA’s Ellis is due to speak later today in what I would expect will be more of the same.

My downside target remains in place, below 0.7200, despite yesterdays bounce.