Sunset Strip | Aussie market recovered popped hard on short covering after FOMC basically said nothing much at all

Sunset Strip | Aussie market recovered popped hard on short covering after FOMC basically said nothing much at all. Turnover was just above $7.2billion with options expiry adding to the volume. Every man and his dog was expecting the word patience to be removed and unless you missed economics 101, it would be really hard to see US growth maintain their pace with strengthening currency, low wages growth and slowing global economy. US Fed basically moved to deflate USD and give more breathing space. They still did not walk away from June rate rise, but the market expects now expect lower magnitude. There was a lot of shorting going into last night which was covered today and that popped the market close to recent high. We do not think there is a rate cut coming in April or June. When it comes to currency wars, RBA is bringing a knife to a gun fight. Instead of wasting another cut like in Feb, RBA will be better served waiting for US Fed to actually move on rates and then cut. (VIEW LINK)