Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market started negative and finished negative after making a recovery to flat during the middle of the day. The two main negatives are US reporting season and Commodities. US reporting season risk remain a key negative as this is the third negative quarter according to expectations. Last two negative quarters drove the market into profit taking mode and we expect this quarterly will also deliver similar result. The next big negative is the falling commodities. RBA minutes and speech tomorrow but it is unlikely to make any substantial difference as it is a price taker. The market will be looking at US Fed next week to make up its mind. RBA most likely to talk about weaker commodities and China to help bring down AUDUSD. Pullback in US market, commodities and/or currency will be negative for Aussie market. Time to be patient and pick the time to buy-in or add more exposure…maintain medium to long term view > long Yield and Gold, short Iron Ore and Oil!!! (VIEW LINK)
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