Reserve Bank of Australia (RBA) Governor Lowe Speech may contain information about the expected change in the bank's interest rates or in the monetary policy. The RBA Governor speech reflects the official position of the Australian regulator on the monetary policy and interest rate change trends.
The RBA's Governor often speaks in public: in addition to regular speeches and press conferences, the Governor participates in international economic forums, speaks at congresses and conferences, and announces official statements of the Reserve Bank of Australia.
The RBA Governor is the one who has the maximum influence on the Australian dollar quotes among all other employees of the Reserve Bank of Australia and the country's supervisory bodies. The Governor has access to the full information on the intentions of the Bank's Board and the opinions of its separate members. Therefore, his statements are often carefully monitored by analysts and economists.
If Governor's rhetoric suggests possible developments in the future monetary policy, such as the upcoming tightening or easing, this may have a short-term effect on the Australian dollar quotes. Positive characteristics of the Australian labor market or inflationary growth statements contained in the speech can also be seen as positive for the AUD quotes. All these factors can give investors a hint of a near-term increase in the RBA's interest rate.