Be careful to sell AUD on intervention headline
Topic: Be careful to sell AUD on intervention headline
FXStreet (Bali) - RBA's Assistant Governor Kent said that they haven't ruled out FX intervention, resulting in a quick algos-led drop in the AUD in a matters of seconds.
However, it feels like an over-reaction by the market as RBA's Governor Stevens also said in recent comments that "currency intervention remains part of the RBA's toolkit even as the case for using hasn’t yet stacked up." Up until now, if anything, conditions to intervene have turned less likely given the continuous depreciation in the Australian Dollar.