Economy

Annual headline inflation is now 3.5%yr but at 2.5%yr, the average annual underlying inflation rate is at the mid-point of the RBA's 2 to 3% target band.  Read more

The RBA kept rates on hold, again, as expected in October, but is progressively becoming more dovish in tone. The RBA has now hinted at the possibility of cutting rates if needed.   Read more

The Aussie dollar was rising against the US dollar, riding high on commodities, but with global equity markets in retreat we are seeing the dollar fall back below parity. The Aussie dollar has always had a strong correlation to the rise and fall of global markets.  Read more

Today was not a great start to the final quarter of the year and it certainly adds a bit more powder to the theory that last week's rally was really just a short covering rally. Obviously the sell-off in the US was the lead for the Australian market, but it still remains all about Europe and the European sovereign debt issues with across-the-board selling, from commodities stocks to the big banks, a fairly nervous day today to start the quarter.  Read more