Aussie market was volatile and delivered a tiny positive with stronger commodities and rate cut supportive CPI. That’s 22 positive days out of 29 trading days since mid-June. As we have been saying for the past week, the CPI data was not going to make much of a difference to the market as any recovery was never expected to bring it back into RBA band. The market had already priced in the rate cut and has been looking forward to FOMC update tomorrow morning and BOJ update on Friday. RBA meets next Tuesday and will react after the markets react to both these central banks with big guns. Even if they don’t cut in August, rising AUDUSD will force them sooner than later as currency war kicks in again. Global markets are being very complacent about the FOMC updates tonight…expect some volatility tomorrow morning!!!.…. (VIEW LINK)
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