AUDUSD has been slowly falling for the sixth consecutive trading session.
The Australian Dollar continues falling against the USD and doesn’t seem to be able to benefit from the USD weakness on global financial markets. The current quote for the instrument is 0.7729.
Christopher Kent, the Assistant Governor at the Reserve Bank of Australia, said today that smaller businesses had been heavily affected by the pandemic and were still concerned about additional taxes, as well as the future economic outlook. These factors had a negative influence on their activities, although this segment of the country’s economy might be significant support of the GDP growth.
Kent once again said that the regulator’s benchmark rate wouldn’t be revised until inflation in the country reached 2-3%. In Kent’s opinion, the rate is currently close to the downside border of its effectiveness. The negative rate is very unlikely to be useful for Australia because it may prevent banks from making loans and credits.
According to Kent, the RBA will consider buying additional securities later this year but this decision will be made based on the economic environment. This was probably the comment that influenced the Aussie fundamentally.
On Thursday, Australia is scheduled to report on the Unemployment Rate, which is expected to go from 6.4% in January to 6.3% in February, and the Employment Change, which may remain pretty the same. The stronger the numbers, the better for the Aussie.