lol, I posted the story behind the moves and you still couldn't understand You just don't get it do you kiwi......the market wasn't expecting a 1% cut. I'm happy to have a rational discussion with you about it if you like but is there really any need for name calling?
I added to my short at 0.7900 and interest rates were nowhere in my analyses. Firstly take a look at how much the AUD has dropped but then again take a look how much the dollar has gained over the last couple months against all currencies. The weighting of the interest decision was of little significance and the price action proved that. Secondly there are a lot of mean reversion players out there so not everyone is trading the same way. Overall the down move was exhausted and needed some consolidation, nothing goes up your down forever. If this decision came last week it would have increased the speed of the movement but not influenced the direction, think of the 2nd derivative.
âThe market can remain irrational longer than you can remain solvent.â - John Maynard Keynes ....and when the carry trade unwinds it's a perfect illustration! I think the market's reaction and the reasons for it were quite well explained in that Bloomberg article I posted, and seem to be the general consensus among the (market moving) institutional traders and market analysts I've heard speaking, they tend not to ignore things like interest rates Like any unexpected data, a cut of 100bp when 50bp is expected and priced in is rarely 'of little significance' to market players.