Lunatic RBA drives Australian dollar higher, hoses bonds

Sigh. My kingdom for a central bank that has a clue about how to defend its nation in a time of lowflation. Every time the lunatic RBA has opened its mouth for eight years it has lifted the AUD. Today’s preposterous optimism from Luci Ellis is no exception delivering another little deflationary slash in the death of one thousand cuts:

With bonds selling a little as well:

XJO does not like it of course:

It’s not going to matter. Reality is swiftly triumphing over the Martin Place asylum.

Big Iron is up:

Big Gas is down as Asian LNG prices crater:

Big Gold is firm:

Big Banks are still falling:

As is Big Realty:

Honestly, where is the inflation? Just point it out for me and I’ll shut up.