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RBA governor Stevens' comments push AUD/USD higher

Posted by Akhilesh Ganti on Feb 21, 2013 6:47:00 PM

(from Bloomberg)

Feb. 22 -- The Australian dollar climbed after Reserve Bank Governor Glenn Stevens said he isn’t seeking a particular exchange-rate response to monetary policy. The Aussie advanced versus all of its 16 major counterparts as Stevens said borrowing costs are “at the appropriate level right now” in testimony to a parliamentary committee. The South Pacific currency pared a sixth-straight weekly loss, its longest losing streak since 2006.

“Stevens’ comments are very firmly focused on what a strong currency means for inflation rather than including any threat of action,” said Sean Callow, a senior currency strategist in Sydney at Westpac Banking Corp. “The tone of his prepared comments indicate no great urgency to cut rates in the near term.” The Australian dollar rose 0.5 percent to $1.0293 as of 10:02 a.m. in Sydney, paring a 0.1 percent weekly loss. It climbed 0.4 percent to 95.73 yen. The rate on 10-year bonds fell two basis points, or 0.02 percentage point, to 3.52 percent.

 

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