AUD rallies despite rate cut and ‘neutral’ statement

The teflon currency strikes again. Looks like the intraday market was short but to rally by 40 pips after a 25bps rate cut is certainly unusual. The statement reads quite ‘neutrally’ to me so I’m not sure what the market is reading into that. I’ll be happy to sell into this rally, especially if AUD/JPY gets back near 86.10/20.

  1. Aud/usd up what the heck? Should we rename this pair to something like teflonite???? I do not think teflonimum would be enough to describe my surprise… Or may be it’s new normal when cut means stronger currency)))))

  2. Agree, i am staying short this puppy. Most probaly everybody was short in anticipation and small squezze would be logical. That at least makes some sense…

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