29 Oct 2013
RBA's Stevens talks down the $A, value misaligned with fundamentals
FXstreet.com (Barcelona) - RBA Governor Glen Stevens is delivering a speech at Citi’s 5th Annual Australian & New Zealand Investment Conference, and headlines are fast hitting the wires as main media outlets get the embargo lifted.
The headlines, courtesy of Dow Jones, included: "Start of policy normalisation by us federal reserve would lessen RBA's own policy difficulties. Currency would help ease squeeze on trade-exposed sector of economy. It seems likely A$ will be "materially lower" sometime in future given declining terms of trade. A$ unusually high, not supported by economic fundamentals."
Further headlines: "Lenders and borrowers still need to take care on housing, lending standards need to stay strong. Some rise in home prices was normal, too early to signal any great concern on prices. Business investment plans still subdued, could be "a while yet" before this changes. Not yet clear whether better sentiment will feed through to spending and investment. Domestic household and business confidence boosted by rise in asset markets."
There was no Q&A after the speech. Next time FX participants may get further clues on the RBA policy thinking will be on Tuesday (November 5), when the RBA is due to release its next monthly monetary policy announcement. At the moment, the OIS market prices the chances of a 25 bp rate cut at 6%.
The headlines, courtesy of Dow Jones, included: "Start of policy normalisation by us federal reserve would lessen RBA's own policy difficulties. Currency would help ease squeeze on trade-exposed sector of economy. It seems likely A$ will be "materially lower" sometime in future given declining terms of trade. A$ unusually high, not supported by economic fundamentals."
Further headlines: "Lenders and borrowers still need to take care on housing, lending standards need to stay strong. Some rise in home prices was normal, too early to signal any great concern on prices. Business investment plans still subdued, could be "a while yet" before this changes. Not yet clear whether better sentiment will feed through to spending and investment. Domestic household and business confidence boosted by rise in asset markets."
There was no Q&A after the speech. Next time FX participants may get further clues on the RBA policy thinking will be on Tuesday (November 5), when the RBA is due to release its next monthly monetary policy announcement. At the moment, the OIS market prices the chances of a 25 bp rate cut at 6%.