Aussie market maintains the negative mode as it remains under the global investor selling pressure with currency getting down below 71 cents before bouncing. During the holiday period, the lack of buying support from insto land means that any selling pressure from the global investors looking to reduce market exposure for falling currency will drive markets lower. We need the currency to get down to mid 60’s to get that monkey off our back, but that won’t happen easily or quickly. The devaluation of the Yuan could be the catalyst that breaks the camel’s back, but time will tell. Chiquities are up today and free-fall worries are subsiding. History tells us that global markets are following their usual path when it comes to Chiquities risk…step (1) panic (2) PBOC pumps cash (3) markets stabilise (4) Chiquities stabilise and recover (5) global markets recover. Global markets hit step 3 overnight and Chiquities showing that we are headed for step 4 soon. Notable moves today were… (VIEW LINK)
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