Glenn Stevens said that economic risks are now more balanced, noting the danger that low interest rates could inflate home prices. Both business and consumer confidence had improved, aided by low interest rates and fiscal stimulus. Stevens said nothing directly about interest rates but his emphasis on upside risks for the economy re-inforces market expectations of tightening. He also said that the domestic downturn may not prove to be a serious one and that unemployment has risen less than expected.
The AUDUSD has moved straight up to the 8240 area.
