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7 Mar 2014
Carousel of RBA Stevens headlines send AUD higher
FXStreet (Bali) - RBA governor Stevens is giving a 3-hour long testimony to the Parliament’s House of Representatives’ Standing Committee on Economics in Australia. So far, the comments have resulted in a higher AUD, as Stevens reassured once again the RBA will go through a period of rate stability, while adding that jawboning has limited effects on the AUD. Below, readers can find the main comments comments.
First welcome remarks
For now, after the RBA published RBA's governor Stevens official speech, the most relevant headlines made reference to rates, saying RBA sees period of stability for rates (nothing new) and that the AUD is still high by historical standards (also not new as it repeats the same line from the last statement in policy).
Stevens said Fed tapering is proceeding as well as can be expected, adding that the RBA monetary policy is playing its part in supporting growth. With regards to forecasts for global economy, Stevens sounded more optimistic, while he also made reference to house building, saying is set to rise strongly, with dwelling investment will rise strongly in period ahead.
As per recent GDP data, it has not significantly change view of below trend growth. On inflation, Stevens said it is not rising as fast as the data would suggest. In terms of consumer spending, Stevens expects it to grow in line with income, while re-emphasizing the pessimistic view on the labour market, expected to remain soft for a while yet. As per the non-resource capex, Stevens sees a rebound at some stage.
RBA Stevens hopeful jobless rate to stabilize soon
More headlines from RBA governor Stevens on jobs crossed the wires, saying he is hopeful unemployment will not rise too much further, although he admitted that unemployment rate may rise a little further yet. On the economy, Stevens said potential growth rate of the economy is 3% or slightly higher.
RBA Stevens: Household debt pretty high
RBA Stevens made further comments relevant to AUD traders, saying household debt pretty high, adding that they are asking for trouble if household debt steps up. In the same line, Stevens added that the biggest threat to housing affordability is price surge.
AUD higher as market likes RBA Stevens headlines
RBA Stevens said he does not see need for lower rates at the moment, while somehow implying that the expensive AUD is a result of a solid Australian economy, comments that appear to have been AUD positive.
RBA's Stevens: Jawboning has limited effect on AUD value
RBA's Stevens says jawboning has limited effect on currency, basically implying that the tactics used so far may not have a long lasting effect on the level of the currency. AUD traders were keen on buying the currency on the headline.
First welcome remarks
For now, after the RBA published RBA's governor Stevens official speech, the most relevant headlines made reference to rates, saying RBA sees period of stability for rates (nothing new) and that the AUD is still high by historical standards (also not new as it repeats the same line from the last statement in policy).
Stevens said Fed tapering is proceeding as well as can be expected, adding that the RBA monetary policy is playing its part in supporting growth. With regards to forecasts for global economy, Stevens sounded more optimistic, while he also made reference to house building, saying is set to rise strongly, with dwelling investment will rise strongly in period ahead.
As per recent GDP data, it has not significantly change view of below trend growth. On inflation, Stevens said it is not rising as fast as the data would suggest. In terms of consumer spending, Stevens expects it to grow in line with income, while re-emphasizing the pessimistic view on the labour market, expected to remain soft for a while yet. As per the non-resource capex, Stevens sees a rebound at some stage.
RBA Stevens hopeful jobless rate to stabilize soon
More headlines from RBA governor Stevens on jobs crossed the wires, saying he is hopeful unemployment will not rise too much further, although he admitted that unemployment rate may rise a little further yet. On the economy, Stevens said potential growth rate of the economy is 3% or slightly higher.
RBA Stevens: Household debt pretty high
RBA Stevens made further comments relevant to AUD traders, saying household debt pretty high, adding that they are asking for trouble if household debt steps up. In the same line, Stevens added that the biggest threat to housing affordability is price surge.
AUD higher as market likes RBA Stevens headlines
RBA Stevens said he does not see need for lower rates at the moment, while somehow implying that the expensive AUD is a result of a solid Australian economy, comments that appear to have been AUD positive.
RBA's Stevens: Jawboning has limited effect on AUD value
RBA's Stevens says jawboning has limited effect on currency, basically implying that the tactics used so far may not have a long lasting effect on the level of the currency. AUD traders were keen on buying the currency on the headline.