An MNI analyst wrote an insightful and prescient piece last week, with this in it (bolding mine):

  • Cross market sees Aussie/US 10-year spread widen after RBA Steven’s attempts to douse the rate cut fire, with his balanced comments overnight. However he also feels that the currency should be trading close to 75c vs. the US dollar. How that will be achieved when there is a potential tsunami of liquidity searching for yield not just from the ECB but also the SNB and BOJ is any ones guess.

Its even more relevant today than it was when written (I think it was December 11) with the Swiss National Bank dipping into negative rate territory (Is the SNB front running the ECB? ).

Could the SNB cut be another straw on the camel’s back for the Reserve Bank of Australia prompting a cut soon? Steven’s recent interview seemed (to me, and others) to heavily discount the potentil for a near-term cut …. but could this piece of new information courtesy of the SNB make a difference?