Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Deep Data Analytics

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)

Mathan Somasundaram
Founder & CEO
Deep Data Analytics

Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Please sign in to comment on this wire.

trending on livewire
Get the best of Livewire by signing up to our popular daily newsletter