RSSAussies Cut Rates
By Chip Hanlon | September 02, 2008 | 10:09 AM | 1 Comment
As you may have heard by now, the Australian Central Bank cut interest rates on Tuesday. Their overnight rate is still quite high (7%) and it doesn't look like they'll be cutting aggressively, but it is becoming clearer to see why the U.S. Dollar is counter-rallying: as we inch closer to our next tightening cycle, other important central banks are starting to cut rates or are approaching their next easing cycle (Europe).
Those looking for the Greenback to correct its recent move, like myself, may not be rewarded to handsomely in the near-term. And the commodity beat-down goes on.
Indeed, lower commodities prices and relief from Gustav's less-than-Katrina-like performance is quite a bullish Tuesday cocktail, as I discussed with a Reuters reporter who could find no one else to speak with yesterday.
Jumping on a plane this morning... will try to write again tonight.
-CH
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