AUD: Intervention talk a bit of a curve ball – ING

Governor Lowe's testimony reiterated a neutral policy tone, citing no real rush to tighten, but the RBA chief's admission that the central bank may be willing to intervene in certain scenarios was a curveball and could well keep the AUD$ on the back foot, suggests the analysis team at ING.

Key Quotes

“Throw in a shaky global risk environment driven by geopolitics and we think AUD long positions could neutralise further.”

“Domestic calendar sees the July jobs report (Thu) and 2Q wage data (Wed). Both matter for the RBA's near-term policy reaction function, especially as the policymakers attempt to grapple with a "lowflation" economy.”