Mathan Somasundaram

Aussie market started positive and then ran out of puff by the close to finish mainly flat. Gold sector remains key with rising market risk as the Spot Gold in USD creates a positive technical signal and Spot Gold in AUD remains in historical high levels. Latest data out of Japan and domestic economy were mixed while US growth and inflation data has raised the rate cycle probability. Singapore data remains weak and that sheds further light on weakening Asian markets. We will get more US and China macro data through this week and that will test market sentiment. We continue to see lack of market sentiment to move higher as market risk rises. We maintain our view to buy some gold and increase cash levels as markets are likely to slide down in the first half of March before bouncing back in the back half of March after US Fed leaves the rates unchanged. RBA can change this dynamics by moving on rates in March, but history shows they will not be proactive.......…. (VIEW LINK)



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