Sunset Strip | Aussie market went down for the fourth day in a row with domestic political malaises and unemployment hitting new records

Sunset Strip | Aussie market went down for the fourth day in a row with domestic political malaises and unemployment hitting new records. Global investors looking for yield likely to be sitting on the sidelines waiting for RBA to get the currency down to mid to low 70's (i.e. cut interest rates below 2%). Given the trading volume today, it seems some global investors keeping having a bite into our market everytime the currency falls to 76 cents level. We were trading at the highest market multiple expansions since GFC compared to long term multiples (i.e. the S&P 300 level of 5800). We continue to suggest that investors take profit as the market ran nearly 10% in 12 consecutive positive days. The latest unemployment data was 6.4% while the market expected 6.2. Stay nimble, RBA will be under pressure to act again next month after their change of bias to negative and record unemployment. (VIEW LINK)