RBA deputy governor Guy Debelle, in a webinar address to the Economic Society of Australia on Tuesday, said that country is showing better signs for the economy but still the country is facing a historically large decline.

The Board has announced a target for the three-year Australian Government bond yield of around 25 basis points. While embarking on $50 billion of government debt purchases to control market interest rates. The economy contracted by 0.3 percent in the March quarter with the bank expecting GDP to shrink by 8 percent for the 2019-20 financial year. The Reserve Bank’s daily market operations were expanded in size and in maturity in response to the large increase in demand for liquidity from the banking system. RBA sets the rate paid on Exchange Settlement (ES) balances at 10 basis points.

Payrolls were down by 8.8 percent in mid-April and have now recovered to be down by 6.4 percent.”The recovery in payroll jobs between mid-April and mid-June represents around 30 percent of the jobs initially lost,” said Mr.Debelle.

Recent data indicates that the economic condition is far better than expected. Mr.Debelle also added that “There is considerable uncertainty over the path from here,” “This uncertainty includes the behavioral responses as health restrictions are eased. There is also considerable uncertainty about the future, which will affect the decisions of businesses and households.”

AUD/USD 4 Hour Chart:

Support: 0.6841 (S1), 0.6817 (S2), 0.6792 (S3).

Resistance: 0.6890 (R1), 0.6915 (R2), 0.6940 (R3).

Speech of Mr.Guy Debelle, RBA Deputy Governor shows signs of better economic condition in Australia which sets a bullish trend of AUD/USD.