September 24, 2024 at 07:08AM
We are not thinking of what size we might eventually cut rates by
Will only discuss how big those moves will be when the time comes
If our rates are steady while others cut, it supports the Australian dollar
Not discussed possibility of government overruling RBA on policy decisions
Even if headline inflation returns to 2% figure, it does not mean inflation is under control
“Sustainably” means inflation coming back down and staying within target band consistently
We are not encouraging or discouraging anything with the exchange rate
Focus should be on the trade-weighted index of the aussie, rather than AUD/USD
That concludes her press conference. Her last point on the exchange rate is definitely a fair one as AUD/USD is also largely driven by policy divergence between the RBA and Fed currently.
Looking at the trade-weighed index of the aussie via Bloomberg, it is only trading back up to levels seen in late August. It is currently seen at 62.40 and a far cry from the July high of around 64.50.
This article was written by Justin Low at www.forexlive.com.