Aussie market got smacked in line with global sentiment in an old fashion broad based bashing due to currency worries. It is becoming very clear that the Aussie market is caught between global investor selling on currency worry and local investors buying for better yield. The selling pressure is not driven by any fundamental change in any specific sector but a more broad based market selloff. China growth worries will drive Yuan further down and that will hit Asian/Commodity countries. Kazakhstan followed Vietnam in devaluating their currency to remain competitive with China devaluation. We are seeing the early signs of the next leg of Currency Wars. China has been slowing down for the past few years and now it’s getting too obvious that even the managed data points are not deflecting the investors from the reality. Shanghai Composite has seen 6% drop day before yesterday, 5% drop yesterday and we are currently down 3%. (VIEW LINK)