He's basically saying that if the Fed is going to cut, they will have to too
- AUD didn't move much on rate cut as it was expected
- Not anticipating getting to low rates seen in UK or Canada
- But we have the capacity to do so, if we have to
- Very concerned about threat of global trade wars
It looks like the RBA is beginning to walk down a very slippery slope here. He's already helped set out what to look out for in terms of anticipating a further rate cut by the RBA and there's a good chance that those conditions may fall into place in the coming months.
AUD/USD holds steady at 0.6978 currently as markets continue to stay in a state of flux amid a mild recovery in equities and Treasury yields.
