- Aussie $ above fundamental value
- a decline would be helpful to economy
- continuing economic adjustment and challenges ahead
- Australian economy continuing to grow moderately
- current low interest rates warranted on macroeconomic grounds
- unclear whether house price increases will continue or abate
- any action on home lending not aimed at construction
RBA gov on the wires in a prepared speech being made in Melbourne. A mention of AUD but nothing of note and no further mention of intervention which will be a relief to the bulls
- wants a prolonged revival in home building, not boom and bust
- housing sector not a threat to financial system, not a “terrible problem”
AUDUSD 0.8730 near session highs. Offers at 0.8750
RBA gov Stevens – weaker AUD would be helpful
