Sunset Strip | Aussie market continues its recent sideways trading pattern with lack of any real sentiment. Turnover was just below $4.6billion. The lack of movement in any macro factor and further slowdown data point from China did not stimulate the market to push to the elusive 6000 mark. Last week US Fed moved to deflate USD and support their economic recovery over other regions. The basic rules of currency war are (1) you do not talk about the war (2) you complain about everyone but it's different when it comes to you (3) once you start the war, you only stop when you are completely sure that you will win (4) currency war is a zero sum game and someone will get hurt for you to win (5) once it becomes race to the bottom, no one wins. We are once again at multiples that are only supported by rate cuts. (VIEW LINK)
I always found it quite amusing that no one really talks about it...must be some central bank club rules like the fight club.
Love the 5 rules of currency wars...