Australia’s dollar held a three-day drop on concern China’s economy is slowing and more onshore bond defaults will follow Shanghai Chaori Solar Energy Science & Technology Co. *AUD/USD was little changed at 89.68 U.S. cents as of 10:03 am in Sydney from 89.77 yday, having fallen 1.4% since March 6; pivot 89.96, resistance 90.31, 90.85, 91.74; support 89.42, 89.07, 88.18 *AUD/USD 1-mo. implied volatility rises 2bps to 9.45%; past year avg 9.92% *Westpac Banking Corp. and the Melbourne Institute’s index of Australian consumer sentiment for March due at 10:30am in Sydney (100.2 in Feb.); Australia’s home loans for Jan. est. +0.5% MoM (-1.9% in Dec.); Reserve Bank of Australia Deputy Governor Philip Lowe speaks in Sydney at 6 pm *Australia’s 1-yr qtrly swap little changed at 2.658% *Australia’s 10y yield holds at 4.18% *Chaori Solar failed to pay full interest on bonds, becoming first default on local publicly traded bond mkt
Australian businesses need to boost efficiency to maintain growth in living standards and could use engineers freed up from mining construction to build more infrastructure, central bank Deputy Governor Philip Lowe said.
Reserve Bank of Australia Deputy Governor Philip Lowe said a stronger currency and higher savings rate have helped contain inflation and allowed lower interest rates even as the mining industry boomed.
Australia’s government needs to stick to its goal of bringing the budget into surplus over the next three years or risk increasing pressure on inflation, central bank Assistant Governor Philip Lowe said today.
Australia’s central bank is relying on slower wage growth and better productivity to contain inflation pressures as the damping effects of a four-decade high currency begin to wane, Deputy Governor Philip Lowe said.