Australian Dollar Australian interest rates

Australian dollar, bonds erase Brexit, rate cut

Thursday, 23 June 2016

The wonderful thing about markets is that they always offer second chances. Today we have a great example as the Aussie long bond completely erases both its post-rate cut rally and Brexit flight to safety:

And likewise the Aussie is flying:

So, has the prospect of more monetary easing in Australia changed? In asymmetric terms, yes. In fundamental terms, no:

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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.