RBA’s Debelle: Markets in the Asian region are much more back to normal

RBA Deputy Governor Guy Debelle recently crossed wires while speaking on the telephonic interview with Bloomberg. The policymaker cited a lack of liquidity in the major G10 currencies while showing optimism for Asian markets.

Key quotes

Volatility has subsided, liquidity in G10 currencies has only returned to around 80% of where it was.

The depth of liquidity is not what it was.

Liquidity is decent but it's not completely back.

Markets in the Asian region are much more back to normal than say Latin American for example.

The demand for the US dollar was also less universal than perceived during the crisis.

Markets like Australia and Canada showing little evidence of a shortage.

FX implications

The news might have been the reason behind the AUD/USD pair’s refrain to respect the coronavirus (COVID-19) woes while taking rounds to 0.6890/85 at the start of Friday’s Asian session.