The RBA Governor Glenn Stevens has just delivered a speech at a meeting of economists in Hobart. His key points were: • Investors underestimate the likelihood of a significant fall in the AUD • AUD$ remains high by historical standards • AUD$ overvalued by most measures, and by more than a few cents • Many exporters find AUD$ quite uncomfortable • Says he is not seeking to actively jawbone the currency lower • RBA has not contemplated tightening • Reference to stable rates could be dropped lower before giving any thought to tightening • Federal budget unlikely to change near term economic outlook • Q1 GDP probably overstated pace of growth, outlook a little below trend • Housing market has calmed down, slower price growth favoured • Conditions in housing market do not warrant higher rates The AUDUSD is sharply lower in immediate in response. Current indicative levels are: AUDUSD 0.9375 / 0.9400 AUDEUR 0.6865 / 0.6890 AUDGBP 0.5460 / 0.5485 AUDJPY 95.55 / 95.80 AUDNZD 1.0700 / 1.0725
Posted on: Thu, 03 Jul 2014 01:28:24 +0000
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