Nothing wrong with the forecast, its the market reaction on EU...

Nothing wrong with the forecast, its the market reaction on EU bailout overiding the expectation of rate cut.

When RBA issue statement last week with the inflation data release this week. Market has factored in 25 bps cut anyway. What surprise the market is AUD turnaround today on EU news and whther the uptrend is sustainable is too early to call for.

Big sharks knew how to drive the sentiment in market. AUD will headed down, but it will wipe out some short stops before failing again. JIMO.