From out of nowhere comes the RBA’s Mr Rainbow from The Australian:
John Edwards, a board member of the Reserve Bank of Australia, told The Wall Street Journal he’d be more comfortable with the Australian dollar trading around US65c, rather than the current US71.50, but added he wasn’t confident a downward movement to that level would occur.
…Mr Edwards said the decline in the Australian dollar from records levels in 2011 looks to have ended, and action by other central bank could push it higher.
“It does look like it (the Australian dollar) has found a base, and I guess I would say I still think it is a bit too high,” Mr Edwards said. “If it was driven entirely by commodity prices, it certainly should be lower,” he added.
…Still, Mr Edwards said that services exports were continuing to grow strongly, despite renewed concerns over the overvalued currency.
“I’d be a lot more concerned about this level if it was not that our export performance on the whole has been pretty good,” Mr Edwards said.
I’ve noted before how terrible Mr Rainbow is at jawboning and here we have it in action again. They’re obviously concerned yet this the best we get? The Aussie fell sharply but just imagine how it would get bashed if they put the effort into jawboning and weak dollar policy that they do into plumping the confidence fairy.
