RBA Parked in Neutral

“IN 2 HOURS | 12.10pm”

Little Lowe opposition to dollar strength

The Reserve Bank governor has offered little opposition to a stronger Australian dollar in Senate testimony today, OANDA senior trader Stephen Innes says.


“RBA’s Governor Lowe offered little opposition to the stronger AUD in this morning’s speech and dealers still view the bar as extremely high for an interest-rate cut from the RBA,” Mr Innes says.

“I suspect the RBA will remain parked in neutral while the US Fiscal and Tax policies unfold and as the Fed’s move further along the path of interest rate normalisation.”

Still, he feels it will take some time for the currency to break any higher, with iron ore in focus after a 3.2pc fall overnight.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes