As FX liquidity levels improve after Monday's US Labor Day holiday, it is time to re-assess some core themes. The first is that a dovish Fed still dominates global asset markets, allowing most equity markets to continue their gentle rallies. The second, and a central one to FX, is the outlook for domestic monetary conditions of which FX plays an important role. Today we have seen the RBA, after a lost quarter of growth on the Delta variant and lockdowns, effectively extend by three months their pre-announced pace of QE. Rob Carnell discusses today's monetary decision in more detail here. Clearly, the RBA would not ... (full story)