Will rates drop further today?
Being ‘D’ day, the AUD is set to have a HUGE RALLY !
Just look at the price action of the past few days. Sold down in anticipation of the RBA belatedly, behind the curve significantly, finally reducing the official cash rate to 2.00%.
Will this save the Australian economy? No, but it will help. Finally getting to 2.00% is likely to get significant media attention and this will help encourage improved investment and consumer sentiment.
It will take a long time of keeping rates at 2.00% however, to make up for the atrocious policies Stevens and his gooses have fostered on the Australian people. Remember the mountain of high rates which destroyed the domestic economy in 2009/12.
Fortunately we are in Asia. Imagine if we were not resource rich though. A doomed society for sure. Thank you Asia for saving us from ourselves!
Speaking of which, on-going Asian resources demand is likely to continue to carry the Australian dollar higher. Our bullish AUD outlook has been proving correct, finally, of late.
The AUD belongs much higher fundamentally.
That Glen Stevens believes the fundamental value is lower,
greatly encourages my bullish view.
Overall the Australian economy remains the great embarrassment of Asia, but from a currency perspective the yield is still high by comparison to the USA, and demand for our commodities remains incredibly strong.
Just keep buying,
Clifford
Clifford Bennett
Chief Economist bT
Auction Clearances still pumping
Holding around record levels. 87% in Sydney. 83% in Melbourne. Tubthumping. The market has never seen anything like it.
House prices strong, but increasingly Sydney-centric
Latest RP Data shows Ozzie houses growing at 8.1% y/y. But Sydney is the main story, growing at 14.4%. Melbourne gets silver at 7%. Bris gets bronze on a barely also-ran 2.5%. Perth was flat. Darwin fell.
John Gian