Flash: AUD/USD to consolidate on RBA intervention talk - OCBC Bank

FXstreet.com (Barcelona) - Emmanuel Ng, FX Strategist at OCBC Bank notes that this morning, the RBA’s Lowe echoed the party line and stated that intervention can’t be ruled out, although he added that the intervention threshold remains “fairly high”.

Key Quotes

“However, although he noted that he’d expect to see the AUD lower over time. On a structural basis, he also stated that the AUD may remain high in a historical context given that relatively high terms of trade may be expected over the next 20 years.”

“In the short term, some consolidative behavior may be expected around the 0.9185 neighborhood pending further cues, although we think the risk reward for the pair may remain tilted south in the interim.”