RBA’s Kent:

  • Haven’t ruled out FX intervention
  • Falling oil prices positive for household incomes
  • AUD too high relative to fundamentals
  • Looking forward to a time when the US normalizes rates

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As you’d expect, AUD hit lower on the intervention comment

Overflow into the NZD also, but its not down nearly as much

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Kent’s earlier comments are here: Australia – RBA’s Kent: Reiterates that the AUD is above most estimates of fundamental value

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More:

  • Macroprudential steps being considered on home lending are modest ones
  • Labour market is subdued, but signs things are improving
  • Jobless rate is broadly consistent with below trend growth
  • China still a positive story for Australia

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Q&A concluded now