4 Aug 2015
RBA’s easing cycle is not over – BTMU
FXStreet (Edinburgh) - Currency Analyst at BTMU Lee Hardman reviewed today’s statement by the RBA at its meeting.
Key Quotes
“The most notable change to the RBA’s policy statement was that they removed the phrase that “further depreciation (of the Australian dollar) seems both likely and necessary, particularly given declines in key commodity prices”.
“The RBA has softened verbal intervention intended to weaken the Australian dollar, and has implied that the Australian dollar is now more appropriately valued although it is still “adjusting to the significant declines in key commodity prices”.
“Renewed weakness in commodity prices highlight that the downward adjustment for the Australian dollar may not yet be complete, and is increasing the likelihood of further RBA easing”.
Key Quotes
“The most notable change to the RBA’s policy statement was that they removed the phrase that “further depreciation (of the Australian dollar) seems both likely and necessary, particularly given declines in key commodity prices”.
“The RBA has softened verbal intervention intended to weaken the Australian dollar, and has implied that the Australian dollar is now more appropriately valued although it is still “adjusting to the significant declines in key commodity prices”.
“Renewed weakness in commodity prices highlight that the downward adjustment for the Australian dollar may not yet be complete, and is increasing the likelihood of further RBA easing”.