RBA Debelle: The (FX market) conditions have continued to improve in recent months
|Guy Debelle, Deputy Governor at the Reserve Bank of Australia, who is speaking at the Global Foreign Exchange Committee and the FX Global Code – at FX Week Australia 2020, has stated that one notable feature of this latest crisis was both how sharply market conditions deteriorated and how quickly they recovered.
He adds that the actions by central banks and governments around the globe doubtless contributed to this rebound.
By and large, he says that the conditions have continued to improve in recent months.
''Many indicators of liquidity are now approaching more normal levels, although the depth of market does remain noticeably below pre-pandemic levels.
Conditions are more diverse in emerging market currencies, where more idiosyncratic factors tend to be in play, but overall, conditions have also generally improved in these markets but to a lesser extent.''
There has been no specific reference to the AUD or RBA policy.
The full speech can be read here.
AUD/USD update
AUD/USD climbed to its best levels in a week overnight, 0.7137.
The greenback was under pressure due to the US fiscal headlines, which indicated progress in talks between House Democrats and the White House.
The dollar got a late-session boost though as equities tanked off and ended in the red as no progress in talks was made towards the signing of an agreement and time is running out.
AUD/USD is trading at 0.7115 at the time of writing and steady at the start of Asia.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.