Aussie market started choppy before building a bit of positive momentum on the back of the banks. RBA continues to talk up the economy and talk down property. Their areas of strength are in employment and consumer spending. Slowing property market, manufacturing doom with car industry shut down and only half way through mining slowdown means that unemployment situation is going to get worse despite low population growth will slow the process. As usual the government tax agenda and comments from Treasury seem to contract RBA’s growth green shoots. When the smoke clears the real change with GST rise will be that the low to middle income class will pay for corporate tax cuts. Assuming there will be strong consumer spending in an environment of high unemployment, property bubble, higher taxes and falling disposable income is fraught with danger. The market will wait and see what happens with US market tonight with non-farm payroll and more US Fed comments. (VIEW LINK)