Australian Dollar Crushed. Did RBA Want Just That All Along?
The Australian Dollar crumbled last week on what at face value was a pretty humiliating few days for its central bank. But has the Reserve Bank of Australia actually played a weak hand rather impressively? Admittedly this is not immediately obvious, to put matters at their mildest. For one thing the RBA was moved to admit that the risk to current, record-low interest rates was finely balanced, and that they could indeed fall once more if economic conditions demand it. This was in broad contrast to its previous belief that the next move was likely to be a rise. It also looked a little like capitulation to the futures ... (full story)