Sunset Strip | Aussie market maintained the positive momentum despite falling commodity prices and Greek election worries

Sunset Strip | Aussie market maintained the positive momentum despite falling commodity prices and Greek election worries. ECB, Germany and IMF have already had their plan in place to deal with Greece while the new government will have to step up. The fact that neither of the Greek parties in power have any experience governing in the past 40 years will mean that they are likely to find the reality of governing a lot more tougher than winning an election. Commodity price risks pulled our currency to mid-79 cents while spot gold started to trace back as overall market uncertainties begin to reduce. We maintain the view that Euro QE will drive PE expansion in equity markets while extended low interest rates and falling bond yields will drive investments towards Australian equity dividend yield as currency stabilises around the high 70's. We do not expect RBA to waste a rate cut by moving before the budget given the historical performance. (VIEW LINK)