21 Jul 2015
RBA Stevens to jawbone AUD lower on Wed - Westpac
FXStreet (Bali) - Westpac provides a recap of the key points on the RBA minutes published earlier in Asia, while reminding us that RBA Governor Steven's speech on Wed should provide an opportunity to again jawbone the aud lower.
Key Quotes
"Of most interest in the RBA minutes was the discussion around the labour market. Recall that a key policy guideline for the Bank has been that if the economy grows below trend (generally assessed as 3%) then the unemployment rate can be expected to edge up. Over the last year or so, growth in the economy has been stuck around a sub-trend 2.5%yr yet the unemployment rate has remained steady."
"On Aud the Board still points out that the Australian dollar had provided less assistance to the economy than would normally be expected and “further depreciation seemed both likely and necessary”.
"Watch the speech early Tom morning from Stevens to the Anika Foundation lunch at 04.05 as an opportunity to again jawbone the aud lower on Fed rate hike prospects. Stevens will speak on current policy issues."
"Very soon the major central banks of the world will begin to come out the other side of the huge monetary policy response to the crisis. No one knows what turbulence this may or may not bring, but Glenn’s views will certainly help you to think about the issues".
Key Quotes
"Of most interest in the RBA minutes was the discussion around the labour market. Recall that a key policy guideline for the Bank has been that if the economy grows below trend (generally assessed as 3%) then the unemployment rate can be expected to edge up. Over the last year or so, growth in the economy has been stuck around a sub-trend 2.5%yr yet the unemployment rate has remained steady."
"On Aud the Board still points out that the Australian dollar had provided less assistance to the economy than would normally be expected and “further depreciation seemed both likely and necessary”.
"Watch the speech early Tom morning from Stevens to the Anika Foundation lunch at 04.05 as an opportunity to again jawbone the aud lower on Fed rate hike prospects. Stevens will speak on current policy issues."
"Very soon the major central banks of the world will begin to come out the other side of the huge monetary policy response to the crisis. No one knows what turbulence this may or may not bring, but Glenn’s views will certainly help you to think about the issues".