Mathan Somasundaram

Aussie market fell on the open and then pretty much traded sideways with a few failed recovery cycles. The market sentiment continues to be aimless as it waits for US clarity post relatively weak employment data. US markets were closed last night for Labor Day long weekend and the markets are waiting to see if the US will rebound or continue on the profit taking slide that has been expected for the past few months. We continue to see a data independent rate hike in Dec. Weak employment data will not kill off “Fed Scare” cycle, but will water it down…expect more jaw-boning from the Fed as we get closer to Sep 20-21 meeting. There are a few macro data risks ahead – Wednesday > Australian GDP, Canadian rate decision, US Fed speech and Beige Book; Thursday > Australia Trade balance, China Trade balance, Japan GDP; Friday > Australia Home Loans, China CPI.…....…. (VIEW LINK)


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