The Australian dollar was little changed against its US counterpart during Friday’s trading and was able to gain on the euro which has been hurt by lackluster economic data from the eurozone. Earlier today, Australian central bank’s chief was speaking, hinting at possibility of looser monetary policy.
Glenn Stevens, Governor of the Reserve Bank of Australia, acknowledged that Australia’s “economic activity outside the resources sector has been gradually improving” but warned that “few, if any, expansions are completely even.” As for foreign affairs, he was particularly concerned about economic developments in China. Regarding monetary policy, Stevens commented:
With inflation unlikely to cause a problem by being too high over the next year or two, the statement after the recent meeting indicated that the Board retains the flexibility to ease further, should that be helpful.
AUD/USD traded at 0.7102 as of 11:34 GMT today after opening at 0.7109. EUR/AUD fell from 1.5924 to 1.5885.
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