The Reserve Bank of Australia left rates unchanged at its monetary policy board meeting today, as widely expected

It's the comments on from Glen Stevens' statement accompanying the decision that is now the focus of much attention ... mostly this:

  • The Australian dollar is adjusting to the significant declines in key commodity prices.

That's a big shift to what they'd be saying previously, which went along the lines of:

  • Further depreciation seems both likely and necessary, particularly given the significant declines in key commodity prices.

This

is

a

Big

Change.

... K?

Very significant

Shorts are under pressure as the AUD rallies in the aftermath.

Of course, what a central bank says doesn't always become the law for the currency; for how long did the RBA bemoan the high AUD when it was up above parity, for example?

But ... for AUD bears and shorts ... it looks like support for those positions won't be coming from RBA jawboning any more.

-

This change in rhetoric on the AUD comes after Stevens also said last week that the country needs to adjust to a lower normal rate of growth.

Stevens has been a busy chap, pulling the rug out from a few strongly held views.