(This is an excerpt from an article I originally published on Seeking Alpha on November 5, 2013. Click here to read the entire piece.)
In today’s statement on monetary policy (Nov 5, 2013 in Australia), the Reserve Bank of Australia (RBA) offered up its usual menu of economic observations. As usual, my main interest turned to what the RBA had to say about the Australian dollar (FXA). I was looking for some creative twist on jawboning the currency lower. Instead, the RBA provided another passive take on the currency…I daresay it even sounds like they are close to giving up hope that the market will cooperate in helping them drive the currency much lower.
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{snip} I know I may be over-reaching, but this change sure sounds like the RBA is preparing for the possibility that the currency will ultimately not cooperate with the needs for economic rebalancing anytime soon.
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Source: FreeStockCharts.com
Be careful out there!
(This is an excerpt from an article I originally published on Seeking Alpha on November 5, 2013. Click here to read the entire piece.)
Full disclosure: long the Australian dollar