During his speech today before the parliament, the Reserve Bank of Australia's Governor Philip Lowey said that he "would prefer a lower exchange rate". In his opinion, "there is no reason to raise rates in the short term". Lowey noted that "inflation remains low", although "business sentiment is improving".

Approximately the same statements Lowey did before. Therefore, his today's speech did not bring surprises.

The Australian Dollar reacted with restraint to Lowey's speech. Nevertheless, the Australian dollar is rising against the US dollar, justifying Lowey's view that "the strength of the Australian dollar reflects the weakness of the US dollar".

And, indeed, the US dollar remains under pressure, continuing to decline against its major counterparts. The dynamics of the dollar is not affected even by the macro statistics coming from the US, indicating an increase in inflation. So, on Thursday there were one more data, indicating the growth of inflationary pressure.