MW: Australian dollar advances after Stevens comments
By Sarah Turner
SYDNEY (MarketWatch) -- The Australian dollar moved higher against the U.S. dollar on Monday after a speech from Reserve Bank of Australia Governor Glenn Stevens thrust the possibility of an October rate hike back into the spotlight. "A hawkish speech from the Governor this afternoon means that the October meeting should be considered 'live,'" noted RBS economists. They said that Stevens highlighted an upbeat outlook for the economy and that that Bank's job is to manage a booming economy. "We think the market should be factoring in a higher chance of an October hike," they said. The market is currently factoring in a 30% chance of an Oct. hike and a 70% change of a Nov. hike, they noted. The Australian dollar climbed to 94.38 U.S. cents from 93.79 U.S cents the previous day.
