RBA talking down the currency has limited longer term implications
Tuesday’s release of minutes of the Reserve Bank of Australia (RBA) June 3 meeting should shed additional light on the central bank’s view of AUD levels. In the June press release, RBA Governor Stevens maintained the view of the past three meetings that the Australian dollar “exchange rate remains high by historical standards,” while adding “particularly given the further decline in commodity prices,” which the market viewed as slight escalation in dovish rhetoric. Stevens continues to refrain from using stronger language of AUD being “uncomfortably high.” This stronger rhetoric has not been used since the November and December policy statements.
Read the full report: UBS