- Glenn Stevens, RBA Governor
Australian currency was poised to become one of the top losers this year, as economy was supposed to stuck in transitions phase, while the analysts were making their bets on when the RBA will make another adjustment to its monetary policy. The latest economic performance, however, is suggesting the economy is showing signs of life, and a change in the RBA's mood send the Aussie to the highest in three months, with AUD/USD and AUD/JPY soaring more than 1% on Thursday. Moreover, following RBA's Governor Glen Stevens comments the Australian currency added additional 0.90%, with the AUD/USD pair rocketing to 0.9112.
As it was widely expected Stevens pointed out that Australian consumers and companies need stable interest rates for a period of time in order to make proper decision about spending and investing. While last week's report showed consumers' mood is improving, with retail sales rising 1.2% in January, Stevens does not see private consumption offsetting a steep decline in mining investment and becoming another driver of growth. He also claimed that higher exports volume and business activity are providing a significant boost to the economy, though Stevens is not sure whether it will provide additional support in the future. Additionally, the Governor believes the unemployment rate, which is now at a 10-year high, will start falling later this year.
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