Stevens slashes rate cut hopes, underpinning Aussie: While the language towards the currency is an escalation of jawboning seen earlier in the year, by...

Stevens slashes rate cut hopes, underpinning Aussie: While the language towards the currency is an escalation of jawboning seen earlier in the year, by stripping out the prospect of rate cuts early next year, something his interview has done, it will actually act as positive for the Aussie until the rhetoric from himself and the RBA Board changes. As for the best way to foster confidence I disagree with the Governor that it's to provide a message of 'stability and predictably'. From my experience this year it is job security that is holding confidence back, something that is partially due to non-mining sectors of the economy being hollowed out by the high AUD and overly-tight monetary policy settings over the past few years. I may well be wrong, certainly it sounds like it given his words overnight, but I'm still happy to call interest rates lower it the first half of 2015. (VIEW LINK)