Aussie market followed the global red paint outlook and started with a Friday the 13th special 2% drop before recovering slightly. The damage was all about US Fed’s move on rates higher looking even more certain in December. The stronger the USD gets, the weaker the AUD and commodities go. Global investors gave another beating to the Aussie market on currency worries while falling commodities took down anything with a resource tilt. BHP could not even phone friend to safe itself, but despite all the negativity it closed above the psychological $20 level. STO leads the energy stocks down the rabbit hole of uncertainty and there is no exit plan anytime soon. Aussie market will remain under the global investor selloff worry till the currency gets down to mid 60’s, but US Fed move should remove a big part of it. Consumer and retail data from US and growth update from EU will keep markets on tender hooks given its Friday the 13th for them. (VIEW LINK)
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