RBA couldn’t jawbone a wet paper bag

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Honestly, what’s the deal? The Australian dollar is dying to go lower. It’s technically reeling. It’s macro underpinnings are being questioned all over. It’s ignoring Japanese and European QE. All it takes is a push and it will tumble.

But what do we get from the RBA today in its quarterly Statement on Monetary Policy? Nothing but motherhood statements, no growth downgrades, waffle about housing supporting consumption, nothing about investor over-heating in housing, nothing about macroprudential and a forecast for rebounding inflation and the same weak-kneed stuff about the dollar maybe being overvalued. The whole thing is here if you can bear it.

The dollar still fell on the release, clearly desperate for a good kick, then sighed and went higher when it didn’t come.

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I ask you, how hard is it to repeat the RBNZ’s recent rhetoric: “its (NZD) current level remains unjustified and unsustainable and continues to constrain growth in the tradables sector. We expect a further significant depreciation.”

Copy and paste, for heaven’s sake.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.