Unwanted rise: Lowe says further rise in the Aussie will slow the track of economic growth and inflation. — Bloomberg
SYDNEY: Australia’s dollar is now a key stumbling block to the economy emerging as a competitive services-driven exporter, prompting Reserve Bank of Australia (RBA) governor Philip Lowe to warn on the implications of extending its surge.
The markets’ response? A collective yawn and a move higher. Traders made it clear that Aussie policy makers will not be calling the shots. It will be decided by what the Trump administration can secure by way of a legislative economic agenda and whether the Federal Reserve can persuade them it will tighten policy as planned. In other words, the RBA’s fortunes are hitched to those of the White House.
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