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27 Nov 2014
RBA stepping up pace of verbal intervention - Rabobank
FXStreet (Bali) - Jane Foley, FX Strategist at Rabobank, notes that the RBA appears to be stepping up the pace of verbal intervention.
Key Quotes
"RBA's Lowe last Tuesday referred to the level of the AUD exchange rate as being “unusually high”. He dismissed concerns about the high level of wages in Australia as really being a function of AUD strength by remarking that “the overall level of wages in Australia are, to some extent, really concerns about the exchange rate, with the high exchange rate leading to high wages expressed in foreign currency terms”. Bearing in mind that the RBA’s Kent in the middle of the month remarked that the RBA hadn’t ruled out FX intervention, the RBA appear to be stepping up the pace of verbal intervention, and it is not difficult to understand why."
Key Quotes
"RBA's Lowe last Tuesday referred to the level of the AUD exchange rate as being “unusually high”. He dismissed concerns about the high level of wages in Australia as really being a function of AUD strength by remarking that “the overall level of wages in Australia are, to some extent, really concerns about the exchange rate, with the high exchange rate leading to high wages expressed in foreign currency terms”. Bearing in mind that the RBA’s Kent in the middle of the month remarked that the RBA hadn’t ruled out FX intervention, the RBA appear to be stepping up the pace of verbal intervention, and it is not difficult to understand why."