Posted: Apr 18, 2012 19:04
The lack of response from the Australian dollar has two facets. The first is that markets are starting to worry if things in China are worse than they appear with this move coming hot on the heels of a November cut. The Fed may know more than it's letting on; in Yellen's testimony she cited international weakness as a risk and the first country she mentioned was China. So rather than buying AUD on the stimulus, the market is worried about the Chinese economy.