Aussie market popped on the open on the back of mining sector and then pretty much went sideways on a volatile day. The market saw selling in defensive yields like property, utilities, Telcos and staples while banks and miners were pushing the index into positive territory. These defensive yields are used as bond proxies and the bounce in bond yields have put pressure on these sectors. US payroll data tonight should be strong and again that will put more pressure on strengthening USD. Gold likely to come under pressure on the back of that while Oil likely to do well. We maintain our view that early August remains a weak period where profit taking is likely with prices running ahead of earnings as the market moves from confession period to reporting season. (VIEW LINK)
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