RBA’s Ellis: Recovery will be little stronger due to extension of job support packages

FX

Reserve Bank of Australia (RBA) Assistant Governor Ellis is once again on the wires now, via Reuters, responding to the Q&A session after her speech titled “The Economic Outlook”.

Key quotes

Recovery will be little stronger due to extension of job support packages.

Employment will now not decline as much as forecast.

Still a pretty weak outlooks given Victoria’s virus restrictions.

Forecasts assume a vaccine will not be fully distributed next year.

Need to get hold of virus to get a strong economy, it’s not a trade off.

Board has not ruled out doing more.

Have not walked away from our inflation target.

May take longer than usual to get inflation back to target.

Inability of US to control virus is a worry.

Very worried virus will weigh on growth in US for some time yet.

AUD/USD keeps the red

Having retreated from 1.5-year highs, AUD/USD holds the lower ground around 0.7225, as markets digest the RBA comments while weighing in the latest US-China tensions.

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