Sunset Strip | Aussie market fought back against the global portfolio sell down just before RBA update despite merger potential between RIO and Glencore

Sunset Strip | Aussie market fought back against the global portfolio sell down just before RBA update despite merger potential between RIO and Glencore. We continue to expect AUDUSD to remain in the high 80's in the short term and then gradually come down to mid 80's. We continue to feel that RBA is currently trying to curb house prices to leave themselves the option to cut rates in 2015...assuming inflation does not spoil the party. The lack of economic leadership by the government and corporates has forced RBA to take steps. The eventual rate rise in US markets in 2015 will create shock in emerging markets and that will put further pressure on commodity prices and growth. RBA realises that Australia needs to start the recovery process and improve consumer sentiment or face much tougher situation than when tapering was announced. Trading idea of the day: CarSales.com (CRZ). Tuesday's Retail Therapy Pick: Woolworths (WOW). (VIEW LINK)