0644 GMT [Dow Jones] The RBA adopted somewhat more direct language on
the exchange rate in its policy statement Tuesday, going further to
highlight a potential divide between underlying fundamentals and moves
in the Australian dollar, Citigroup says. It says the new language
could mark the beginnings of a shift in stance from the RBA, although
it's unclear what policymakers could do to counter currency
appreciation that is largely a function of global developments. It
adds, the first step would likely be the adoption of stronger language
expressing concern with exchange rate moves on any additional
appreciation. However, Citi says that since this would do little to
undermine the attractiveness of the AUD in a risk-on environment, any
dip in the AUD on the back of such language would ultimately represent
a buying opportunity. The AUD/USD is at 1.0571.
(james.glynn@dowjones.com)
Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com
(END) Dow Jones Newswires
August 07, 2012 02:44 ET (06:44 GMT)
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