With just six words - "deliberated for a very long time" - the Reserve Bank of Australia (RBA) Governor, Glenn Stevens last week sent the Australian Dollar tumbling. The currency, already on a downward spiral over the past two months, lost half a cent following Mr Stevens' comments last Wednesday about the Reserve Bank's decision to leave interest rates unchanged a day earlier. It reflected how sensitive financial markets are to any remarks about the embattled currency at the moment.
For the last couple of years, the RBA has been talking down the Dollar and no one seemed to listen. However, we are now really seeing a changing dynamic for the domestic economy, as well as the Australian Dollar, especially over the last three months in which time the currency has fallen 12%.