RBA's Debelle: We have capacity to reduce cash rate one more time

The Reserve Bank of Australia (RBA) has the capacity to reduce its policy rate one more time, RBA Deputy Governor Debelle said on Wednesday.

"Beyond that, we will have to consider quantitative easing (QE)," Debelled added. "I don't think negative interest rates are something that would be contemplating." Commenting on the upbeat GDP data, Debelle noted that it is consistent with their view of a "gentle turning point" in the economy. 

AUD/USD reaction

The AUD/USD pair inched slightly lower on these comments but continues to cling to its daily gains. As of writing, the pair was up 0.5% on the day at 0.6615.