More CPI and rate cut ruminations

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Bonds are selling and the Aussie is bid today as nerves creep in about tomorrow’s CPI number, via Fairfax:

Macquarie:

The surprisingly muted degree of conviction around the timing of further RBA easing means that the CPI presents a clear catalyst for the Australian dollar, and arguably for market perceptions around sectors that may be perceived to benefit from rate cuts (for example, housing and consumer-related companies).

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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.