Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market got another day of working over by global investors getting out for currency worries. Aussie market is caught between global investor selling on currency worry and local investors buying for better yield. China growth worries will drive Yuan further down and that will hit Asian/Commodity countries. We are seeing the early signs of the next leg of Currency Wars. China has been slowing down for the past few years and now it’s getting too obvious that even the managed data points are not deflecting the investors from the reality. Shanghai Composite have fallen 4.3% today and Chiquities have now fallen below the 200 day MA for the first time since the crash started. PBOC can’t continue to throw money at it when they are trading at multiples that are double the rest of Asia. China’s latest manufacturing data out today was again proving to the world that things are slowing down faster than anticipated. Given this outlook, it makes sense for global investors to get out of China and related Asian/Commodity countries. (VIEW LINK)