More comments to follow
AUDUSD down to 0.9265 so far on the news
- so far has not been convinced that intervention would be effective
- intervention would also carry costs, very large evaluation risks
- powerful global forces are work keeping AUD high
- cites scale and persistence of shift in Australia’s terms of trade
- points to extraordinary monetary easing in major economies
- long-held RBA view is that intervention can be useful if used judiciously
- to be effective intervention has to reinforce fundamentals not go against them
- says Aussie $ probably above its longer-run equilibrium
RBA governor Stevens was making a speech we highlighted earlier here and here
The Australian Dollar: Thirty Years of Floating” – addressing the Australian Business Economists (ABE) Annual Dinner
AUDUSD back down to 0.9260 after a brief rally to 0.9276
