AUD had a tough week, rate cut next?
The RBA may be less than two weeks from cutting rates in a move that may kick of a global easing cycle. The market is pricing in a 43% chance of a cut but that's risen since 8% before the CPI report.
On the flipside, the yen has outperformed this week as global yields fell.
It all argues that the most-important headline this week was from China late last Friday where they indicated less stimulus ahead than previously. A statement late Friday from a meeting of the Politburo hinted that the economy is on a stable enough footing that more support isn't needed. Instead there was a focus on deleveraging and avoiding speculation in the housing market. It's an abrupt reversal.
The CSI 300 fell 5.6% this week.
