I think this will be the pricing in of the number of cuts in the US. Medium term rate expectations are increasing, and Aus are still relatively lower. Regardless, falling AUD increases inflation pressure locally, strong trend suggesting minimal local rate cuts in next couple of years, potentially even to need to start raising rates again in a year or two. Something that Australia in general has seemed to rule out in most mainstream media... particularly when 'the big 4 banks expect rate cuts'. This has an eerie 'spiral out of control' feel to it. The 10Y bond yields have reversed all impacts from the rate cuts so far in the US.
I think everyone agrees that current housing prices are at a ceiling of affordable compared to wages, new homeowners are struggling to meet interest payments, a 'shock' change in rate sentiment over the next few months could make for an interesting time. China cooling down, trump tariffs and then employment starting to cool next year, reducing immigration, an election in the mix... I see volatility ahead that's for sure
