Analysts Comments

Saxo Bank - "Surely yesterday was some kind of short-term capitulation across markets: we certainly hope so, as AUDJPY was down as much as 13%+ on the day before the big bounce overnight. The RBA cut a surprise 100 bps - which really shouldn't be surprising considering the market action of late and shows more foresight than what we are seeing from the BoE and the ECB. The AUD selling was so overdone that the 100 bp cut may actually be seen as a good sign that the RBA is at least willing to do something to shore up the economy relative to other central banks (notably of the European variety), interest rate differentials aside."