Aussie market pulled back from the 6000 index level for the fourth time in two months despite better Iron Ore prices. The global macro worries, currency wars and better than expected domestic data continues to put doubt on a May rate cut. We still struggle to see the index breaking above the 6000 mark without the rate cut. The Turnover was just below $5.7b. Short covering continues to be a feature of the market since late last week. We remain of the view that this is the fourth opportunity to take profit with global and local risks rising. Markets are not confident that the commodity recovery in Iron Ore and Oil will be sustainable without much of a supply side collapse. AUDUSD looks like going higher pointing to US Fed’s ability to water down USD is much stronger than anything RBA can throw at it. There were a lot of dogs bouncing since last week on short covering and we saw more today. Don’t confuse short covering with sentiment recovery as things can unwind very quickly. (VIEW LINK)