Stevens speaks out...
The Reserve Bank governor, Glenn Stevens, who steps down next month, said in an exclusive interview with The Australian, that the tide of foreign investment was pushing up the value of the Australian dollar and countering the impact of Reserve Bank rate cuts.
He says:
"Australia wants to be open to foreign capital. That's our national philosophy. I think in that discussion it would be helpful to think about the kind of foreign capital we want. Foreign capital that builds new assets - like some of the capital that funded the mining boom - that's one thing. Foreign capital that buys up the existing assets, I'm not saying that we should be closed to that, but that's not creating new capital for the country. That's just altering the allocation of who owns the capital that's here now."
For the full text of his comments, you can read all about it HERE
The AUDUSD ran up with the fall in the USD today but has since moved back to unchanged on the day (the close was at 0.76726 and the NY low just reached 0.7673). The price is looking to test the 200 hour MA at the 0.7667 level. The last three trading days has seen the pair move below that MA but each time the breaks failed.
