13 Feb 2015
RBA Stevens: Nothing earth shattering so far...
FXStreet (Bali) - Up until now, RBA's Governor Stevens comments to the House of Reps Committee are not providing any major surprise to market participants, with the wording very much in line with what was expected.
On the AUD, Stevens said it has further to fall, adding that the decline in export prices hurting terms of trade. With regards to monetary policy, Stevens notes that still has capacity to give additional support to economy, which is a familiar rhetoric that won't surprise markets, especially given the current pricing of RBA cuts, with the OIS pointing at a 25-30% chance of at least two more cuts by May.
The Australian Dollar may get more volatile at the Q&A, but so far, only a diminutive 10/15 pips range seen.
On the AUD, Stevens said it has further to fall, adding that the decline in export prices hurting terms of trade. With regards to monetary policy, Stevens notes that still has capacity to give additional support to economy, which is a familiar rhetoric that won't surprise markets, especially given the current pricing of RBA cuts, with the OIS pointing at a 25-30% chance of at least two more cuts by May.
The Australian Dollar may get more volatile at the Q&A, but so far, only a diminutive 10/15 pips range seen.