As per my expectations RBA has indeed pulled the trigger and cut the main interest rates by 0.25% to 2.00%. I have been warning of the high probability of an cut in my recent post here: Preparing the Week Ahead However despite this move from RBA, the market reaction was not as per my expectations as I was looking for more downside.
I only may guess that the market was heavily short and the rate cut was already price in by the market, so we got a short squeeze. In this regard I can see th…
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