Australian dollar falls after RBA Chair Lowe's remarks

Reserve Bank of Australia President Philip Low has confirmed the consumer price target, pointing out that the bank will stick to long-term interest rate cuts, which prompted the local currency to retreat against its US counterpart.

Despite speculation that Lowe would ease the current target for inflation between 2% and 3%, he said he would stick to that target today.

Lowe said that the central bank is not obsessed with the inflationary target, but it seeks to support economic growth and stability of inflation just to bring prosperity to the Australian community.

The Australian Central Bank, the US Federal Reserve, the European Central Bank and others are moving towards easing their monetary policies by cutting interest rates on signs of the global economy's growth slowing.

Expectations are widely expected that the US central bank in particular will cut interest rates at the next week's meeting as the European Central Bank is moving towards a quantitative easing program.

In terms of trade, at 16:16 GMT, AUD/USD fell by 0.4% to 0.6948, and recorded a high of 0.6985 and a low of 0.6948.