Sunset Strip | Aussie market got nailed by global investors getting out with currency worries after Energy prices followed Iron Ore into the abyss

Sunset Strip | Aussie market got nailed by global investors getting out with currency worries after Energy prices followed Iron Ore into the abyss. OPEC followed the path of the big Iron Ore miners and decided to maintain oversupply to kill of the marginal high cost producer in US Shale while also driving Russia into recession. The fact that OPEC decided to not meet till next June and decided not to even make a minor supply cut shows they wanted the price to fall a substantial amount. Given the fall in Iron Ore and now Oil with local federal government releasing tax white paper, financial sector inquiry and mid-year budget update, it was logical to expect further de-rating of AUDUSD. Global investors have once again decided to take their money and run. Local investors are now again looking at a market trading at fair value, but will wait for sentiment to improve before jumping in. (VIEW LINK)