I've decided to call this system Ek-Chuah after the Mayan god of trade.
RBA keeps interest on hold
This was today's major news item. No surprises here. The market initially fell in the first five minutes until bargain hunters entered at 93.500.
The market has been ranging since then. The RBA continued to talk down the Aussie dollar, calling it 'uncomfortably high'. In my opinion, talk is always cheap, and present a good opportunity to buy on the dips. The way I see it, if a central bank is talking, then it doesn't want to be doing. The other interesting bit about the RBA's statement is that it is still observing the full effects of two years of rate cutting. This suggests that the RBA is overly cautious about asset bubbles in Australia, a factor which should discourage further interest rate cuts.