24 Oct 2013
Flash: AUD appreciation would be harmful – TD Securities
FXstreet.com (London) - Research teams at TD Securities noted details of Lowe’s speech.
Key Quotes:
“RBA Deputy Governor Lowe’s speech detailed the familiar reasons why non-mining investment (NMI) has been weak, then details why the Bank forecasts NMI "in the high single digits within the coming years" via (1) business confidence picked up pre- and post election, although "needs to be sustained" (2) low interest rates (help to "move out the risk curve") and (3) while the lower AUD ("8% lower since April") has been welcome, "further depreciation would be helpful"”.
Key Quotes:
“RBA Deputy Governor Lowe’s speech detailed the familiar reasons why non-mining investment (NMI) has been weak, then details why the Bank forecasts NMI "in the high single digits within the coming years" via (1) business confidence picked up pre- and post election, although "needs to be sustained" (2) low interest rates (help to "move out the risk curve") and (3) while the lower AUD ("8% lower since April") has been welcome, "further depreciation would be helpful"”.