Good morning, 


For a take on the RBA decision yesterday and its economic outlook, please watch the video at acy.com



In a nutshell, it is of great concern that they are totally dismissive of inflation over all time horizons, and see a quick, strong economic recovery from the current Delta shutdowns.

Probably wrong on both points, this means Australia has a future of a well behind the curve central bank. This creates a double risk for the economy and markets, in the form of higher inflation and eventually higher rates than we would otherwise have needed to have.

Being very much a bear, I am nonetheless watching resistance at .7425. A break above there, could see a greater quantum level correction. Favoured scenario, is that level, or immediately .7405, will contain for downtrend resumption. That said, .7425 is a level to keep an eye on.

AUD near key resistance post RBA

Aug 04 2021