Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market gave back yesterday’s bounce and remains in a technical down trend with better than expected domestic data and currency wars putting doubt on May rate cut. Top ten reasons to take profit: (1) China growth worries (2) Greece facing risk of leaving EU (3) US inflation up for 3 months in a row and the trend putting pressure on US Fed to push up interest rates by Sep (4) Major commodities facing multi years of oversupply and falling demand (5) Astonishing employment data and better than expected inflation data puts May rate cut in doubt (6) Budget plans do not make sense (7) RBA concerned about housing bubble and household debt at historical high (8) US Fed moving back to currency war and China stimulus pushing up AUDUSD (9) RBA jawboning the currency down without the fire power already backfiring (10) “Sell in May and go away” is only 2 weeks away. The short term macro still remains very positive for buying Gold equities since mid March as AUD Spot Gold remains positive for most Aussie miners. (VIEW LINK)