(Image attribution - Dennis Cox)

The Reserve Bank of Australia just cut their interest rate 100 bp (Tuesday morning) and pared losses in all Asian markets as traders see the first signs of coordinated global Central Bank action to stop the bloodletting. Expect a series of rate cuts as the sun rises on each market.

Update 10/7/08 7:20am PDT: it appears the Central Banks are still testing the waters with the reaction to the Australian cut. Instead of a rate cut today, the Fed is setting up a Commercial Paper Funding Facility that Bernanke will discuss at 10:00am PDT. This will be another of many moves to unfreeze the credit markets.