For two meetings in a row, the RBA has added two cents to the currency. Last night was helped along by a weak US dollar but the crosses table shows you the damage done by the central bank. All green:
This is all the more odd given that the Aussie clearly wants to go lower. Markets know it needs to go lower. For two meetings in a row the currency has sat right on long term lows, begging to be pushed. But each time central bank blundering has held it aloft.
When MB first mooted the notion that the RBA embrace macroprudential in 2011, we thought that there was a certain inevitability to it. We hoped that Australian housing would remain quiescent as interest rates entered an historic plunge but argued that what was needed was an insurance policy against that outcome, given the disaster that that would represent as the mining boom went bust. As David Murray says today:
