• Aussie $ above fundamental value
  • a decline would be helpful to economy
  • continuing economic adjustment and challenges ahead
  • Australian economy continuing to grow moderately
  • current low interest rates warranted on macroeconomic grounds
  • unclear whether house price increases will continue or abate
  • any action on home lending not aimed at construction

RBA gov on the wires in a prepared speech being made in Melbourne. A mention of AUD but nothing of note and no further mention of intervention which will be a relief to the bulls

  • wants a prolonged revival in home building, not boom and bust
  • housing sector not a threat to financial system, not a “terrible problem”

AUDUSD 0.8730 near session highs. Offers at 0.8750

RBA gov Stevens - weaker AUD would be helpful

RBA gov Stevens – weaker AUD would be helpful