Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market started positive with solid ANZ result and optimistic global lead. RBA delivered a badly timed and overly publicized rate cut that is unlikely to deliver better consumer sentiment, higher business capex, more growth or even lower currency. RBA should have learnt from the wasted cut in Feb that there is no point in moving when there are too many powerful global forces are in play. Consumer sentiment is heavily reliant on unemployment outlook. The Turnover was just above $6.6b. Risk remains for short term traders, but long term investors should look to buy into any pull backs. RBA and the Federal Government have positioned themselves out of the economic picture in the short term. We are likely to float along on a low growth outlook with global macro headwinds providing volatility. The currency will eventually pullback and the sustainable yield outlook will always get global interest in a low interest rate environment. Commodities that have elastic demand/supply like Gold, Copper, Nickel and Zinc are looking quite good as the currency pulls back. (VIEW LINK)