Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market opened positive with global sentiment and then made another leg up after China GDP growth slightly beat expectations. Grexit risk is still there but the contagion risk is now a non-event. Greece parliament has to accept the deal and act on it or face Grexit. EU is unlikely to get into any more negotiations on major steps while Greece does not want to force EU to let them go. Logic suggests that there will be a bit of a song and a dance before things gets passed. Chiquities are down 4% today despite announcing 7% GDP growth rate being slightly above expectations and smack bang on 2015 growth guidance by the government.We are expected to hear from US Fed tonight and we expect them to use the weak consumer data and global risks in EU and China to set the scene for rate change to be later and slower. China stimulus and US Fed talking down USD will continue to support our currency in the short term, but the medium to long term trend is lower. (VIEW LINK)