Nicholas Forsyth

A choppy day of trade within a reasonably tight range headlined by the RBA decision on rates at 2.30pm. As widely expected they held firm at 1.75% however commentary key as always. Most focus stays on the last paragraph and looking at the spike in the AUD post the release and a big move higher in bond yields (as the below charts shows) traders were clearly looking for more rhetoric emphasising a future easing bias…It wasn’t there so the AUD rallied, bond yields moved higher & the equity market sold off – about 25pts in short order after the release only to make a marginal recovery into the close. Iron Ore up +3.3% in Asian trade helped. (VIEW LINK)


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