RBA's Stevens on the wires

  • RBA has signalled willingness to lower rates if needed
  • AUD likely to fall further yet over time
  • Board proceeding with an appropriate degree of caution on interest rates
  • Low rates are working to boost home building and household wealth
  • Rising house prices and high leverage should not dominate policy but cannot be ignored completely
  • Liquidity has declined ion global markets and investors are complacent on risk

The great jawboner manages to knock 40 odd pips off of AUDUSD down to 0.7728