Australia Dollar Stable, Stevens's Speech About The RBA Monetary Policy

Australia Dollar Stable, Stevens's Speech About The RBA Monetary Policy

 

Australia dollar looked steady on Tuesday (30/06) this afternoon against the u.s. dollar, after early this morning it was reported that home sales data in Australia has decreased and Glenn Stevens speech from RBA. Industrial property data showed that sales of new homes in Australia has decreased by as much as 1.4 percent in may, after rising 0.6 percent in the previous month. AUD/USD 0.7695 touched during the trading session, high level in Asia. The pair subsequently consolidated into position 0.7681.

 

 

• Normalization Is Far

This afternoon, the Governor of the Central Bank of Australia (RBA), Glenn Stevens, delivered a speech that warned that the refund rules of monetary policy is expected to be normal feels "painful" for a number of investors. And it takes a few years for the RBA to return monetary policy to normal. The Central Bank is currently undertaking efforts repeatedly tightening of regulations in order to prevent asset bubbles-asset prices.

In addition to defend yourself from a policy that is similar to the central bank of central banks of other developed countries are busy trim interest rates, as well as printing money as stimulus, Stevens warned also that there is an impact that would occur if the stimulus or cutting interest rates do too much. As you well know, RBA has cut the interest rate from 2.5 per cent to 2 per cent, in two cuts.