Aussie market opened substantially negative with global markets before recovering to close slightly negative after touching positive territory for a very short time. The US and Euro markets had the expected dummy spit overnight mainly on the devaluation of Yuan. This was all about the Chinese returning the favour to grab back the manufacturing that US, Europe and Japan grabbed through Currency War since GFC. The currency war is back and China wants their manufacturing back. There is number of employment related data out next week on the domestic front and RBA and the government are hoping the fairy tale job data continues. Employment is the only factor they are all hanging their hat on. Inevitably the mean reversion in the job data will deliver 50,000+ job losses for a few months and that should bring back the rate cut cycle. As we wrote last week, “GREED IS GOOD, BUT PROFIT IS BETTER”…short term buy cycle is close…Monday/Tuesday looks potential if the markets hold up. Notable moves today were… (VIEW LINK)
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