Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market pulled back to deliver another negative day as US data tonight and China data on Saturday points to macro risks. Currency is now below 73 cents and may have a 71 handle if the market flips the risk off trade. ANZ and WBC have already gone ex div while NAB and MQG will go ex div next Tuesday. The key financial updates next week are RBA minutes on Tuesday and ABS Employment data on Thursday. If the employment data starts to turn negative….and we are expecting that in the next few months…rate cuts will be priced into the market. Given the move by RBA and the likelihood of US Fed pushing back, the downside risk from US pull back is likely to be less than 5% for the Aussie market. As the market pulls back slightly, buy into the market while everyone else is scared!!! FOMO will come after this pullback as rates are going to remain low for longer than market expects!!! (VIEW LINK)