Governor Glenn Stevens Speech

So that Reserve Bank of Australia (RBA) Governor Glenn Stevens gave a speech this afternoon as mentioned in the update. He was giving a talk during lunch at the Queensland University of Technology Business Leaders’ forum. “There’s a sort of urban myth that is going around that it’s understood that we wouldn’t raise rates in the year of an election,” he said, “I object to that notion.” “Whatever has to be done has to be done.” “I think all the people concerned are aware of the state of the economy and the importance of long-term fiscal discipline,” Mr Stevens said. And so, what did the Aussie dollar do? He gave the speech around 1pm Sydney time, and it’s now 4.50pm Sydney time: the Aussie/US is trading at 0.8377 cents as I type - about 10 pips lower compared to this morning. Personally, after hearing a speech like that I would be bullish on the dollar, but perhaps the market needs a little more proof? Hey at least, the dollar didn’t go plummeting down as if there was no chance of an interest rate rise. BTW, did you manage to go short on the dollar by going short a few days ago when the dollar was ranging between 0.8410 and 0.8450? If so, Good on ya!