Sunset Strip | Aussie market kept the momentum and delivered 7th straight positive day despite AUDUSD hitting 5 year lows

Sunset Strip | Aussie market kept the momentum and delivered 7th straight positive day despite AUDUSD hitting 5 year lows. We always felt that global investors stuck with low returns will return to Australia after the currency stabilises in the mid to high 70's. The recent jump in turnover and overall market action points to global investment coming in and ramping our market index up 300 points in 7 days. There has not been any substantially positive macro change or stock information to move the market by that margin. We do not expect RBA to waste a rate cut by moving before the budget given the federal government's budget track record, current leadership wobbles, substantial fall in petrol prices and property bubble worries. RBA will be forced to cut rates after the budget to keep consumer sentiment from shutting economic activity down with a lame duck government. The global stimulus, higher asset values and lower interest rates will continue to support higher equity markets with stretched fundamentals and central bank actions. (VIEW LINK)