25 Sep 2013
Flash: RBA likes a weaker AUD – TD securities
FXstreet.com (London) - Research teams at TD Securities noted overnight news coating the AUD.
Key Quotes:
“AUD Skilled vacancies for Aug rose +0.3% (prior +0.5%) making three consecutive non-negative prints, and driven by non-mining states NSW and Vic. The AOFM plans to issue at least $A500m of a new 2% 2035 inflation-linked bond tomorrow. There is already a 2.5% 2030 linker benchmark with $A2.9b outstanding”.
“The RBA’s semi-annual Financial Stability Review believes the financial sector is sound, prepared for Basel III, and with shrinking risks associated with Europe and a now lower AUD. The FSR’s findings are presented to the RBA Monetary Policy Board”.
“The role of the weaker AUD in this context is that it should help ameliorate the challenges faced by some trade-exposed sectors in recent years”.
“The report also says “It is important that those purchasing property do so with realistic expectations of future dwelling price growth” and that “banks maintain prudent risk appetite” - these housing comments are targeted at the recent explosion of investor finance as well as self-managed super funds buying property. This has been interpreted that the hurdles to cutting further are high but is a little misguided”.
Key Quotes:
“AUD Skilled vacancies for Aug rose +0.3% (prior +0.5%) making three consecutive non-negative prints, and driven by non-mining states NSW and Vic. The AOFM plans to issue at least $A500m of a new 2% 2035 inflation-linked bond tomorrow. There is already a 2.5% 2030 linker benchmark with $A2.9b outstanding”.
“The RBA’s semi-annual Financial Stability Review believes the financial sector is sound, prepared for Basel III, and with shrinking risks associated with Europe and a now lower AUD. The FSR’s findings are presented to the RBA Monetary Policy Board”.
“The role of the weaker AUD in this context is that it should help ameliorate the challenges faced by some trade-exposed sectors in recent years”.
“The report also says “It is important that those purchasing property do so with realistic expectations of future dwelling price growth” and that “banks maintain prudent risk appetite” - these housing comments are targeted at the recent explosion of investor finance as well as self-managed super funds buying property. This has been interpreted that the hurdles to cutting further are high but is a little misguided”.