Make no mistake, the RBA had three choices today, based on previous guidance.

1. Make no change.
2. Change the tone of commentary and make no change.
3. Cut Rates.

We’re still a bit flabbergasted so we’ll take some commentary from Zerohedge:

Following the 15th surprise rate cut of 2015 (Singapore, Europe, Switzerland, Denmark, Canada, India, Turkey, Egypt, Romania, Peru, Albania, Uzbekistan and Pakistan, Russia and now Australia), the Aussie Dollar has cratered to its lowest since May 2009 against the US Dollar at 0.7650 (and bond yields crashed by the most since 1997 to record lows). Aussie stocks kneejerked higher (on an extremely dovish RBA statement) but are fading (as are Chinese stocks). Perhaps even more concerningly indicative of the central banks losing control, following this morning’s weak Japanese auction (or more properly expressed – BoJ monetization farce), USDJPY (under 117), Japanese stocks (down 350 points from US session highs), and JGBs (yields up 6-8bps) are all being sold.

Rate cuts and dovish statement…

• RBA UNEXPECTEDLY CUTS RATE TO RECORD 2.25%
• RBA says further fall in a$ likely to be needed to balance economy

And so…Aussie Dollar collapsed on the RBA surprise cut – biggest drop since June 2013

Dropping it to May 2009 lows…

Aussie Bond yields plunged by the most (on a percentage basis) since 1997…