The comments from the RBA Governor regarding the Australian economy were a bit mixed but the fact that the AUD/USD is back above 1.0300 does tell us something; namely that the short-term market is caught short at the wrong levels. No reports of any big flows or orders, so today’s AUD rally is simply and end-of-week short squeeze.
Glenn Stevens did say one other interesting thing; that the weakening of the JPY had been a bone of contention at the recent G7 and G20 meetings. Whilst he distanced himself from comments made by RBA board members Ridout where she criticised the Japanese Government for their tactics on the Yen, he didn’t rebuff the comments, merely saying that she had not been speaking on the board’s behalf.
I’m watching levels around 96.25 in AUD/JPY and I may try entering a short if we get close to that level, but as always best wait and see how the market looks if/when we get there.