James Marlay

After Glenn Stevens speech on Friday there has been renewed debate that the RBA is jawboning the currency back towards parity. Stevens commented I personally think a lower currency than this will be helpful in rebalancing the growth sources of the economy. Whether it's in my gifts to make that happen is another question. The comments have been interpreted by many as an admission that rates are unlikely to move lower which has ignited debate about the tools the RBA has available. With the hopes of GDP growth pinned on the East Coast of Australia (Tourism, manufacturing, industrial activity) the strength of the AUD is likely to have a bearing on how quickly activity ramps up. An interesting piece from Macro Business (VIEW LINK)


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