Its contagious, NZD falling away also.
Both economies are going to be hit hard by the coronavirus slowdown in China. If the numbers are to be believed out of China (plenty of doubts have been expressed about doing so) then the rate of spread is declining. But, in South Korea its accelerating, and Japan looks like it'll be next.
The veracity of infection data from SK and Japan should be less doubtful. We might get a better picture then. But AUD and NZD not hanging about waiting …
Monthly candles for a big pic overview:
Added in to the AUD woes are:
- labour market is a long way from the RBA's current full employment target
- wages growth persistently weak
- GDP growth below trend (and likely to get worse before it gets better)
- underlying inflation well under the RBA target
- A government disinclined to further fiscal stimulus
- The RBA is like a kangaroo caught in headlights - it takes A LOT to move 'em. How much longer will they sit on their hands this time? April rate cut?
