More comments from RBA’s Stevens (earlier comments here):
- Australian dollar direction from here depends on view of fundamentals
- Expects decline in terms of trade, would be surprising if AUD didn’t drop with terms of trade
- Going to have a boom in residential construction
- Doesn’t see danger of serious outbreak in inflation
- Unwelcome if people expect 10% home price growth as normal
- Australia potential growth a little over 3% – economy has ample potential to grow at 3%
- Inflation expectations remain well anchored
- Would be reluctant to draw lines in the sand in FX markets
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There we go, a little bit of talking the AUD down
