Australian Dollar Rises from Multi-Month Lows
The Australian dollar rose toward $0.70, bouncing off multi-month lows as markets assessed comments from the central bank. Reserve Bank of Australia Assistant Governor Christopher Kent acknowledged signs of faster-than-expected labor market easing, but cautioned against reading too much into one month of data. September unemployment unexpectedly climbed to 4.7%, its highest in five years, prompting markets to trim expectations for another rate hike. He also noted evidence that neutral interest rates were rising in Australia and abroad, while expressing confidence that policy remained somewhat restrictive but questioning whether it was restrictive enough. Meanwhile, after posting a modest weekly loss last week, the Aussie gained some ground against the US dollar after remarks from Federal Reserve officials signaled no urgency to tighten policy. Fed Chair Kevin Warsh said at an IMF event that he does not “prejudge” rate decisions ahead of the October 27-28 policy meeting.
The Australian dollar rose toward $0.70, bouncing off multi-month lows as markets assessed comments from the central bank. Reserve Bank of Australia Assistant Governor Christopher Kent acknowledged signs of faster-than-expected labor market easing, but cautioned against reading too much into one month of data. September unemployment unexpectedly climbed to 4.7%, its highest in five years, prompting markets to trim expectations for another rate hike. He also noted evidence that neutral interest rates were rising in Australia and abroad, while expressing confidence that policy remained somewhat restrictive but questioning whether it was restrictive enough.
Meanwhile, after posting a modest weekly loss last week, the Aussie gained some ground against the US dollar after remarks from Federal Reserve officials signaled no urgency to tighten policy. Fed Chair Kevin Warsh said at an IMF event that he does not “prejudge” rate decisions ahead of the October 27-28 policy meeting.