Here's The Paragraph From Glenn Stevens' Speech That Smashed The Aussie Dollar This Morning

Photo: Getty

The RBA really ramped up the rhetoric this morning in its desire for a lower Aussie Dollar.

Speaking this morning the Governor delivered probably his most aggressive message ever to buyers of the Aussie dollar when he said:

“Another part of the balanced growth path would involve an expansion in some of the trade-exposed sectors that have been squeezed by the high exchange rate. The foreign exchange market is perhaps another area in which investors should take care. While the direction of the exchange rate’s response to some recent events might be understandable, that was from levels that were already unusually high. These levels of the exchange rate are not supported by Australia’s relative levels of costs and productivity. Moreover, the terms of trade are likely to fall, not rise, from here. So it seems quite likely that at some point in the future the Australian dollar will be materially lower than it is today.”

Besides intervening by selling Aussie dollars to drive it lower the Governor could not have been any more aggressive. And here’s the chart, via

Intervention might not be as far away as many thought.

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