21 Nov 2013
Flash: Officials are likely to talk down the AUD - RBS
FXstreet.com (Barcelona) - The RBA Governor Stevens speech at a dinner for the Australian Business Economists tonight in Sydney, due at 9 GMT, with the topic “The Australian Dollar: 30 Years of Floating”, is likely to talk down the $A, notes Greg Gibbs, FX Strategist at RBS.
Key Quotes
"The RBA governor over the last month has increased is jawboning of the currency lower. The RBA recently forecast that the slowdown in mining investment is faster than they had thought, and it is seeing a lower exchange rate as an important element in boosting confidence in the non-resources sector. There should be little doubt that Stevens will make similar statements today."
"Before that the Australian Treasury’s most senior and respected economist David Gruen is to give a speech at an ABE conference. The Treasury has emailed out his power point presentation. It is called “The non-mining economic recovery”. It includes a steep decline in mining investment, offset to some extent by rising exports, but requiring a significant pick up in non-resource growth to achieve trend growth in Australia. One might presume there is a good opportunity for him to also make negative comments for the AUD."
Key Quotes
"The RBA governor over the last month has increased is jawboning of the currency lower. The RBA recently forecast that the slowdown in mining investment is faster than they had thought, and it is seeing a lower exchange rate as an important element in boosting confidence in the non-resources sector. There should be little doubt that Stevens will make similar statements today."
"Before that the Australian Treasury’s most senior and respected economist David Gruen is to give a speech at an ABE conference. The Treasury has emailed out his power point presentation. It is called “The non-mining economic recovery”. It includes a steep decline in mining investment, offset to some extent by rising exports, but requiring a significant pick up in non-resource growth to achieve trend growth in Australia. One might presume there is a good opportunity for him to also make negative comments for the AUD."