RBA's Lowe: All options on table if unemployment rises rapidly, inflation falls

All options will be on the table if the unemployment rate in Australia rises rapidly while inflation continues to fall, Reserve Bank of Australia (RBA) Governor Phillip Lowe said while speaking at the Annual Australian Business Economists Dinner, in Sydney, on Tuesday.

Lowe further noted that he was concerned that low wage growth was becoming a norm and said worker should expect faster wage growth. "We need to get unemployment down lower than the estimate of full employment," Lowe added. "Monetary policy is not the solution to every problem."

Following the initial spike toward the 0.6800 handle earlier in the hour, the AUD/USD pair lost its traction and was last seen trading at 0.6777, where it was unchanged on a daily basis.