Dithering RBA whacks Australian dollar

See the latest Australian dollar analysis here:

Macro Afternoon

After today’s longest RBA minutes in living memory, the Australian dollar fell away. Who can say if it was the obvious fact that they’re going to have to cut rates or it was just the market’s vote of disgust at a dithering fool:

Bonds are bid:

And stocks:

Big Iron is just loving China’s swiftly developing war on Australia:

Though BLK is waking up to what it means:

Big Gas hasn’t priced Labor at all:

Big Gold is still strong:

Big Banks are up again as profit growth is consigned to history:

Big Realty is firming too as an historic housing crash bears down:

Aaaand…the market can stay irrational for longer than…etc…

David Llewellyn-Smith
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  1. Wacked??…its down 6 pips from when RBA statement released…actually jumped 15 before then falling 30 (down 15 from release time..) now down only 6…muted response after algo’s were finished..

  2. BBSW is now falling pretty sharply. Still a bit of a mystery what is moving it but I suspect its more to do with the Fed and short rate differentials than local credit concerns.

    Makes me think that RBA won’t cut soon. They are aware that funding costs are normalizing they might expect the banks to reverse their round of “funding cost related” mortgage hikes first.

    • In line with LIBOR…banks reporting also over, time for hoarding cash finished, back to opening up for biz..

      • Happening globally..(Bloomberg) — Hong Kong dollar’s three-month interbank borrowing cost,known as Hibor, slides 4bps to the lowest since May 2018 to 1.66536%.