Despite the well reported huge sell off of the China stock market our ASX 200 is still performing lower.
Why? I blame the RBA and Glen Stevens... RBA release of statements that are foolishly of positive narrative to tone on the Aussie Dollar ( http://goo.gl/yhofQM ) which is crippling us economically. The international markets have of late and will continue to jump all over the AUD if they continue to get any decently positive signals from RBA and thus will sell big caps like BHP and the Banks as its kryptonite to our economic heath.... .
As the article above notes the RBA has been consistantly pumping more positive tones which is a stark contrast to its tones on the AUD which it stopped doing in August and the AUD has stopped moving down since then!
Its a huge contrast to how other central bankers play the game..
While Janet Yellen at the USA fed reserve will use the excuse of the volatile chinese stock market as an excuse not to raise rates/USD while having 5% unemployment. Compare that to our Glen Stevens is happy to talk up the AUD just for fun, while our unemployment is higher!