Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Aussie market finished slightly in the black after flip flopping all day. The commodities were stable overnight, but have started to show weakness as Chinese markets are down 3%. AUDUSD is now below 74 cents and RBA data points to more rate cuts coming. The economy is weak despite the backward data showing stability. Fiscal policy setting shows no catalyst for recovery in the next three years. The payroll data tonight in the US will be the key for the next week in terms of giving clarity on US Fed move in June. The currency trend suggests that USD will strengthen from here and a strong payroll data will deliver that. Stronger USD will be negative for commodities, AUDUSD and 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. Three of the big four banks will go ex div in the next two weeks and dividend hunters will tempted to jump in. (VIEW LINK)


Mathan Somasundaram

2017 - Now > Blue Ocean (AUS) > Market Portfolio Strategist 2012 - 2017> Baillieu Holst (AUS) > Head of Strategy, Quant and Data Analytics 2009 - 2012 > Bell Potter / Southern Cross (AUS) > Head of Quant and Data Analytics 2007 - 2009 > LIM...

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