Aussie market started positive before pulling back to finish negative on China Yuan devaluation and Oil price falling in Asia. PBOC moved the peg down for Yuan the most in six weeks while Oil started to pull back on Iran adding to oversupply worries. OPEC is still holding fire on supply while non OPEC countries are screaming for a cut. Both Iron Ore and Oil likely to trend down in the short term, but market is betting on limited downside risk. RBA is a price taker in the currency war by the big 4 central banks. RBA will be forced to cut rates as the unemployment rises with slowing economy. Property prices are going to go down as more banks move on rates out of cycle. Government has moved on media rules to drive consolidation in the industry….just in time before the election…weirdly coincidental or buying support!!! APN, PRT and SXL will be targets while FXJ, SWM and NEC will attract merger chat...…. (VIEW LINK)
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