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21 Feb 2013
Forex Flash: RBA Governor Stevens testifies today - NAB
RBA Governor Stevens testifies before the House of Representatives Standing Committee on Economics, the event is scheduled at 22.30GMT, the NAB strategists note.
According to NAB: "While he will face many questions on the state of the economy and the outlook for mining investment, his responses will largely reflect the Bank’s views as reported in their February Quarterly Statement and he is unlikely to give much away in regards to the outlook for the cash rate."
However, in the eyes of NAB, "the session does provide an opportunity to talk down the currency, as RBNZ governor did on Wednesday, but we are doubtful his words will have as much effect."
"The intervention threat rings hollow after recent data showing a complete hands off approach by the central bank, and he cannot claim the scale of currency overvaluation that the RBNZ did" the bank concludes.
According to NAB: "While he will face many questions on the state of the economy and the outlook for mining investment, his responses will largely reflect the Bank’s views as reported in their February Quarterly Statement and he is unlikely to give much away in regards to the outlook for the cash rate."
However, in the eyes of NAB, "the session does provide an opportunity to talk down the currency, as RBNZ governor did on Wednesday, but we are doubtful his words will have as much effect."
"The intervention threat rings hollow after recent data showing a complete hands off approach by the central bank, and he cannot claim the scale of currency overvaluation that the RBNZ did" the bank concludes.