AUD: The Governor Speaks
On Tuesday, RBA Governor Stevens is due to deliver his final public address before the next RBA policy decision. He last spoke over three weeks ago, noting “If the economy ‘needs’ a lower exchange rate, it will probably get it.” Since then the unemployment rate has ticked up to 5.7%, nearly hitting a fouryear high. The latest surveys also show that economic rebalancing away from mining has yet to begin in earnest. So expect more cautious rhetoric. The Australian dollar will be particularly sensitive to any hint that last week’s inflation numbers were weak enough to trigger a rate cut.
Read the full report: UBS