Sunset Strip | Aussie market got hammered with a perfect storm of Euro growth worries on German downgrades, US market selloff, house prices cooling and falling...

Sunset Strip | Aussie market got hammered with a perfect storm of Euro growth worries on German downgrades, US market selloff, house prices cooling and falling Iron Ore. We went negative early Sep on valuation and geopolitical risks, but it seems we went positive too early in late Sep by underestimating the speed of the currency de-rating and collateral damage from US market pullback. These issues are not new or not expected, but it is all in the timing. Given the yield, valuation and the currency pullback, we continue to feel confident that our market will recover despite the short term global volatility. 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 mid-2015. Trading idea of the day: CarSales.com (CRZ). Friday's High Risk Pick: Bionomics (BNO). (VIEW LINK)