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Markets have taken the RBA cut completely backwards for no apparent reason. Bonds have been smashed:
And the Aussie soared a full cent:
Fairly dovish statement. Easing bias not repeated but intact. Strong currency jawboning. Macroprudential reinforced.
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Fade the lot I say, unless someone can explain it!
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.