The Reserve Bank governor has all but ruled out more interest rate cuts while targeting an Australian dollar of 75 US cents. In the newspaper interview published today, Glenn Stevens says he expects the falling value of commodity exports to drag down the local currency. This time last year, he said he would prefer to see the Australian dollar 85 US cents. He also said further interest rate cut would send a negative message about the Australian economy. Over the course of the year, the Australian dollar has come down from highest of 95 US cents in July to now 82.6 US cents today. 

 

The Australian share market fell to make head way despite gains on Wall Street. By the close, the All Ords was down 1/5 of a percent, as was the ASX 200 Index. Across the region, Japan’s Nikkei is up by around 1.5%. Hong Kong’s Hang Seng is also edging a little higher. And the Australian dollar has reversed most of yesterday’s gain though it was rebounding from those lowest hit after those comments from the RBA Governor.