We should closely monitor instability factors, and implement market stabilization measures in due course if needed. In addition, there is also a possibility of potential insolvencies in the household and corporate sectors materializing as various financial supports are unwound.
In particular, we only intervene if: (i) market liquidity has significantly deteriorated during a period of stress; or (ii) the exchange rate has moved a long way from fundamentals, with damaging consequences for the overall economy. The last time the RBA intervened in the foreign exchange market was during the global financial crisis, more than 13 years ago. So intervention is very unusual.