RBA cash rate

eskys · Tuesday at 4:51 PM

farmerge said:
@eskeys. I guess where the markets starts and finishes each day is only at the whim of the buyers and the sellers.
So is the markets too high?
Sellers more than likely would say no, it should be higher,
and conversely the buyers would have the opposite view.

Today's psychology had me confused, farmerge. If they think it'll go higher, they won't be selling. Maybe AI is pushing the stocks down to buy cheaper later? If they push hard enough, small investors cave in. Am I making sense?

farmerge · Tuesday at 4:57 PM

eskys said:
Today's psychology had me confused, farmerge. If they think it'll go higher, they won't be selling. Maybe AI is pushing the stocks down to buy cheaper later? If they push hard enough, small investors cave in. Am I making sense?

@eskeys pretty well spot on.
When it comes to a paper loss there are plenty of sacred rabbits out there bailing out on a whim or "will the SP of whatever is being held, will it drop lower".
From my perspective a drop is generally followed by a rise, perhaps not as quickly as some would like but that is the nature of the Stock market.
Sure, I have been caught out couple of times, recently as last Friday, as I quit some holdings on the assumption I was going to be laid up in hospital for about 2 weeks, only to be discharged on Sunday afternoon because of an infection in the lungs.
Sadly, that did cost me some coin, but what it is, is.

eskys · Tuesday at 5:13 PM

Knobby22 said:
But as the dollar lowers foreign investors holding lose.
I noticed CSL jumped a lot today. Because it earns in foreign currency?

Guru Bob, (I mean @farmerge ) is probably right.

It's cheaper for foreign currency if our dollar drops, and CSL was down a lot lately. It's international so not affected today.(hope I'm on the right track) Having said all that, it's still a blur to me...our market is very small in comparison to other markets, maybe it's cheaper for them to invest in Asia/somewhere else. Anyway, I'm happy with the rate cut today so long as the banks pass on the cut.

Good night, folks, good luck for tomorrow..

divs4ever · Tuesday at 7:08 PM

Craton said:
Guess that would depend on how much one is indebted or leveraged or number of mortages etc etc etc eh?

I'd also suppose that this, is just one of several small reductions the RBA is planning.

according to some commentators , the market spooked when it thought it heard 'no more rate cuts in the near term ' , so MAYBE the market was expecting more ( a bigger cut or more of them )

whatever was said certainly didn't lift the markets after the announcement

divs4ever · Tuesday at 7:13 PM

eskys said:
Today's psychology had me confused, farmerge. If they think it'll go higher, they won't be selling. Maybe AI is pushing the stocks down to buy cheaper later? If they push hard enough, small investors cave in. Am I making sense?

well according to consensus , 90% expected the cut , so did they hope for a series of cuts OR 0.5% ( certainly more than 0.25% )

well i am hoping to 'buy cheaper , later ' if AI agrees with me why would i need to buy AI subscriptions

qldfrog · Tuesday at 11:00 PM

eskys said:
It's cheaper for foreign currency if our dollar drops, and CSL was down a lot lately. It's international so not affected today.(hope I'm on the right track) Having said all that, it's still a blur to me...our market is very small in comparison to other markets, maybe it's cheaper for them to invest in Asia/somewhere else. Anyway, I'm happy with the rate cut today so long as the banks pass on the cut.

Good night, folks, good luck for tomorrow..

CSL makes USD prfit, if RBA lower rates -> AUD should fall vs USD ..aka USD should rise;
As a consequence, profits of CSL in AUD should be higher tonight than yesterday: CSL should rise.
That is economic logic..but share market and economics...
I looked:
today CSL up 2.14%..make economic sense

moXJO · Friday at 4:03 PM

qldfrog said:
CSL makes USD prfit, if RBA lower rates -> AUD should fall vs USD ..aka USD should rise;
As a consequence, profits of CSL in AUD should be higher tonight than yesterday: CSL should rise.
That is economic logic..but share market and economics...
I looked:
today CSL up 2.14%..make economic sense

Don't say that. I just bet our dollar was going to rise. Market hopefully already priced in the rate cut previously. Now I've said that the dollar will probably drop like a stone

qldfrog · Friday at 4:09 PM

moXJO said:
Don't say that. I just bet our dollar was going to rise. Market hopefully already priced in the rate cut previously. Now I've said that the dollar will probably drop like a stone

I hope, just bought USD etf today

divs4ever · Friday at 4:21 PM

moXJO said:
Don't say that. I just bet our dollar was going to rise. Market hopefully already priced in the rate cut previously. Now I've said that the dollar will probably drop like a stone

it should ( the Aussie Peso ) improve against the Kiwi which cut by 0,5%

but who knows

sptrawler · 2025-02-23T13:07:51+1100

A good article on the workings of the RBA,

Drum beats and politics: how RBA rate calls are really made

The Reserve Bank board has always done what it believes is right. But former senior officials say it hasn’t stopped successive governments from trying to get their way.

www.afr.com

RBA cash rate

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