Tomorrow at 7:30pm RBA Gov Stevens Speaks is scheduled to speak to the House of Representatives Standing Committee on Economics in Canberra, Australia.
[column size=”1-2″ last=”0″ style=”1″] I expect to hear neutral or positive words from the RBA Governor tomorrow. Monday’s release of the Monetary Policy Meeting Minutes included the following positive news for the AUD “Domestic financial conditions had eased in recent months as a result of the earlier reductions in the cash rate, which had seen borrowing rates fall a little below their medium-term averages. While the full effects would take some time yet to become apparent, there were tentative signs of an effect on the housing market. There had also been a noticeable pick-up in business credit growth over recent months. Consumption growth had strengthened, though this probably reflected, in part, the government payments made over recent months. At the same time, however, the exchange rate had remained at a relatively high level, notwithstanding the weakening in the global outlook and decline in many commodity prices.” (source)
“Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery” according to the FOMC minutes released today. In result, tomorrow’s 8:30am unemployment claims will be watched closely by investors to see if there is deviation to add to the bearish momentum.
I think, if the Governor speaks positively tomorrow and additional bearish USD news is released with the unemployment rates , the AUD/USD could easily visit the 1.06 level again soon.
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