Aussie market was once again taken to the cleaners with negative global sentiment and falling currency. We have had 12 out of the last 15 days being negative. The rate rise in US will happen this week or any future US Fed update will become worthless. US Fed will raise rates at a gradual slow pace due to the high debt in corporate level as well as loss of buying power by consumers. The global investors selling out of Australia will continue to happen as the currency is seen as overvalued above 70 cents. Once the currency moves down to 65-68 cents level, the global investor currency worry will be off the table. Gold was the only positive performing sector while SUN was the catalyst for the downfall of diversified financials after they delivered margin pressure outlook in today’s update. The positive news from SUN update was that the premiums are likely to go up and that will be positive for brokers like AUB and SDF. (VIEW LINK)
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