RBA Stevens successfully talking down the AUD

FXStreet (Bali) - Glenn Stevens, Governor of the Reserve Bank of Australia (RBA), speaking to the Australian Conference of Economists (ACE) and the Econometric Society Australasian Meeting (ESAM), in Tazmania, making some very dovish comments that are weighing on the AUD.

Key headlines via Reuters

Stevens says rebalancing signs encouraging but some way to go yet

Stevens says monetary policy very accommodative, but still has ammunition on rates

Stevens says a$ overvalued by most measures, and by more than a few cents

Stevens says investors under-estimating risk of sharp fall in a$ at some point

Stevens says not seeking to actively "jawbone" the currency lower

Stevens: has not contemplated tightening, stability language has worked on market expectations

Stevens: could drop reference to stable rates long before giving any thought to tightening

Stevens says federal budget unlikely to change near term economic outlook

Stevens says longer term tightening of fiscal policy seems sensible

Stevens questions whether budget impact on household confidence will persist

Stevens says q1 gdp probably overstated pace of growth, outlook little below trend

Stevens: housing market appears to be calming down, slower price growth favoured

Stevens says conditions in housing market do not warrant higher rates