Aussie market fell from the open to break the 6 day positive streak on weak global sentiment and oil reaching bear territory while a mini bounce on another wasted rate cut at 2:30pm faded as quickly as it came. The market has had a great run since mid-June and we moved into “Buy the rumour, Sell the fact” as we suggested yesterday. RBA cut rates to put a speed bump in front of a rising currency, but the reality is that RBA is bringing a knife to a gun fight. Currency war is well and truly started again and Australia will be a casualty of war. CBA has already jumped straight after the cut to announce that they will pass 13bps on variable rate….expect others to do the same or even less. RBA just chose to support banks and developers over retiree returns and asset bubble risks… (VIEW LINK)
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