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4 Oct 2013
Flash: Confusion on RBA and AUD levels - TD Securities
FXstreet.com (London) - Annette Beacher, strategist at TD Securities Singapore, points out there being a lack of clarification on exactly where the RBA sight the AUD as preferably being in terms of value.
Key Quotes:
“Another signal from the RBA that needs further clarification, is the lack of explanation as to the Board’s shift in stance in assessing what is a “high level” of the AUD”.
“The September Board communiqué said “The Australian dollar has depreciated by around 15% since early April, although it remains at a high level” but earlier this week, the RBA said “The Australian dollar rose recently, but is still about 10% below its level in April. A lower level of the currency than seen at present would assist in rebalancing growth in the economy”. Where is the reference to the AUD being at a high level?”
“There are mixed messages here: in September, the AUD at $US0.90 was at a ‘high level’, but this week the AUD at $US0.934 was not seen to be at a high level. By what criteria is the RBA Board making these judgments?”.
Key Quotes:
“Another signal from the RBA that needs further clarification, is the lack of explanation as to the Board’s shift in stance in assessing what is a “high level” of the AUD”.
“The September Board communiqué said “The Australian dollar has depreciated by around 15% since early April, although it remains at a high level” but earlier this week, the RBA said “The Australian dollar rose recently, but is still about 10% below its level in April. A lower level of the currency than seen at present would assist in rebalancing growth in the economy”. Where is the reference to the AUD being at a high level?”
“There are mixed messages here: in September, the AUD at $US0.90 was at a ‘high level’, but this week the AUD at $US0.934 was not seen to be at a high level. By what criteria is the RBA Board making these judgments?”.