The RBA carried its jawboning message on the high dollar to New York last via an interview with John Edwards at the WSJ. Find it below:
Edwards argued weakly that “currency looks a bit overvalued” but says that we “might have to wait till the Fed moves on the overnight rate”. He also noted that the “problem is that [rates] are zero in the US, Euro and Japan”. He says that a lower currency would be better, but doesn’t want to “specify a particular rate”. “In the longer term we would be better-off with a lower currency, but our exports are currently doing quite well”.
With respect, in jawboning terms Edwards wouldn’t frighten an AUD long fly. Not only has he just published the prozac version of Australian economic history, there is no urgency in his demeanor or arguments and his heart is clearly not in it.
Either he’s undermining the jawboning program and should be politely muzzled or you should do the jawboning, Capt’ Glenn.
