AUD/USD runs into minor resistance near 0.5700
The pair was trading around 0.5570 when Lowe began speaking but crept higher to around 0.5610 shortly during the speech. But after Lowe talked about possible intervention, it pushed the aussie higher towards 0.5700 before easing to 0.5680 currently.
All that said, the pair is still down by 1.5% on the day and on the week, the aussie is the weakest performing major currency - down by over 8% against the dollar.
The key question is does the RBA action today and Lowe's remarks change anything?
Offering more support for the economy is good but in a time where the market is feeling distressed, the message tends to get lost in translation. I would argue that funding pressures still need to be addressed before investors will focus on other things.
As for Lowe's remark about intervening in the currency market, I'd take it lightly. Obviously, no central bank wants sharp and sudden moves taking place in their own currency and the RBA is no different in that regard. But actual intervention, I don't think we're there yet.
The near-term picture also shows that AUD/USD is still pressured to the downside as the key hourly moving averages sit well above 0.6000 at 0.6037 and 0.6262 respectively.
Sellers are firmly in control and while there is scope for mild retracements, this is no time to be picking a bottom still in the aussie in my view.