RBA governor Stevens heads off to clown school this morning, where he will address parliament’s House of Representatives’ Standing Committee on Economics.
He’ll be questioned on the economy, the outlook for the economy , the dollar and the RBA’s monetary policy.
Stevens will express some concern about the level of the AUD, so watch out for those headlines. He won’t talk it up. The RBA does not want a “9” in front of it.The market is well aware of this and are not long going into this event. The market is fully expecting some jawboning. If we get it the AUD will dip, but be met with bids (the market is not long), if we don’t … Stevens is going to get a bigger “9” in front of it. NFP is out in the US later, of course, so that may dampen too much enthusiasm as we await the lottery results.
He will also reflect on the improved outlook for the Australian economy.
That time again… from 2230GMT.
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AUD/USD has buyers lining up from 0.9000/10, and at 0.9045/55
Some stops above 0.9110 and sellers 0.9120 and 0.9140/50
heading into the testimony
