Reserve Bank of Australia (RBA) “will not respond until there is evidence of pervasive price pressures,” the central bank Governor Phillip Lowe said at an event honoring journalists on Tuesday.

Additional quotes

“Monitoring the job market for labor costs signals and how pervasive shift in inflation is psychology is.”

“Also monitoring how persistent supply-side problems will be.”

Market reaction

AUD/USD keeps lows near 0.7375 on the dovish comments from RBA’s Lowe, as it clearly reflects the monetary policy divergence between the Fed and RBA. The pair is down 0.26% on the day.