Assistant Governor Kent spoke at the Bloomberg breakfast this morning in Sydney and the Monetary minutes have given the AUDUSD rate small northbound boost allowing traders to pick up a short influx off around 20 pips. The south train is already kicking in with major issues being pointed out by the RBA. There were no notable changes in the tone from the RBA and the minutes reveal key areas of issues including the high AUD and underutilisation of the workforce which has shown the slowest wage growth in 17 years. Yields on Aussie bonds had declined and money is migrating back to the USA as they look at increasing interest shortly. Non mining business investment also remains subdued. Kent also indicated that the growth in the economy was triggered by a sharp rise in the resource exports, which could now be burdened by bearish production data coming out of China at a 6 year low.
We remain bearish on the AUDUSD rate and recommend short positions above .9020.