I’ve begged the RBA to muzzle its resident unicorn. But Mr Rainbow (John Edwards) is off the leash again. From the WSJ on yesterday’s employment report:
“They are unambiguously good numbers,” he said.
Still, Mr Edwards said he would not rely on a few months of employment data to judge that the economy has “turned a corner.”
“We know that mining investment is continuing to decline and will for likely several years to come, and we know that government spending is very slow and a drag on growth,” Mr Edwards said.
And we know that markets are enthralled to central bankers right now and uber-sensitive when it comes to currencies, so why egg on the dollar rally (which took off by the way)?
For instance, in a parallel meritocratic universe where the RBNZ runs the Australian economy the same utterance from John Idwuds was printed as:
These are isolated numbers. Without a lower dollar unemployment will continue to climb and choke off any cyclical rebound.
And the dollar fell to 62 cents.