Yesterday I posted on US Treasury / IMF criticism of RBA comments on the Australian dollar
I'll elaborate a little here, on what was actually said, and translate it into central banker speak:
The US Treasury said to the RBA "Why don't you STFU about the AUD?!!!" - which was conveyed as: US Treasury "expressed concern" on RBA AUD comments
RBA Governor Stevens responded yesterday (Ryan had the his speech covered here and here), saying "Why don't you go and get ******", ; translation: talking the Australian dollar down is "absolutely" consistent with a commitment to a freely floating exchange rate
- Stevens said making observations about whether the Aussie is undervalued or overvalued is not out of line. "We haven't done a dollar intervention in this whole episode, and occasionally we have an opinion about the market price, which is not that unknown in central banking circles"
- Stevens was also asked how a zero-interest rate policy, similar to the one adopted by the US for several years, fits into having a market-determined exchange rate. "That's a question you could pose to those countries that have zero rates"
More from Stevens (the polite version) here
"If I have to listen to any more of this ****..."
