The statement by the Governor of the Reserve Bank of Australia (RBA), Philip Lowe, continued to add wounds to the Aussie dollar trading to plunge lower during the start of the Asian session today.
Speaking in Sydney early this morning, Governor Lowe noted that bond purchases and small drop in interest rates were among the central bank's options to support policy during the recovery.
According to him, the RBA is currently studying the importance of buying longer government bonds as part of a monetary stimulus package to boost employment and growth.
The central bank is said to be assessing whether expanding the existing bond purchase program by including a longer maturity period will help the RBA's main goal of creating jobs.
10-year bond futures have jumped to their highest level since April at 99.225 following this statement.
In addition, Governor Lowe signaled a drop in interest rates from the current low of 0.25%, saying monetary easing would be more effective as the economy gradually loosened coronavirus restrictions.
As a result, the Aussie dollar fell 0.57% and traded around 0.7137 against the US dollar.
The currency failed to take advantage of its bullish opportunities despite being shown with employment data that exceeded market expectations. Australia's unemployment rate rose to 6.9% from a previous reading of 6.8%, and missed expectations for an increase of 7.0%.
