Today I was interviewed again by Carson Scott on Trading Day, Sky Business channel on the Australian market, the Australian dollar (AUD/USD) and what the RBA will decide next Tuesday at their next monthly monetary policy meeting. Specifically I was asked about the recent movement in the AUD/USD and its current significant levels.
We spoke at length about the RBA and what they will be considering next week, specifically recent inflation data, unemployment, housing data and more recently the appreciation of the AUD/USD. The fact that the AUD/USD recently was within reach of the 0.81 level earlier this week would not be pleasing the RBA. The most significant key level for the AUD/USD is 0.7850 which has provided stiff resistance for several months and is now providing some support.
Governor Stevens only a couple of weeks ago expressed his surprise that the Australian dollar was still as high as it was and it will no doubt be at the forefront of their meeting next Tuesday, amongst all the other things in the barrel. We also spoke about the consequences of them sitting still next week and not changing rates. I expressed my belief that central banks generally have a long term view on the economic situation and they have plenty of more monthly meetings this year to act, if they don’t next Tuesday.