Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market started negative and closed even more negative despite recovering in the middle of the day with latest inflation data. The main game is all about the rate cycle outlook from US Fed in the morning. The local inflation data had something for everyone and nothing in terms of real value for anyone. The inflation was low enough that there could be a rate cut, but strong enough that there wasn’t a deflation worry. Sadly the reality is that whatever happens, RBA is running around with a pea shooter while US Fed, ECB, BOJ and PBOC are going around with cannons. In the game of currency war, Australia is all but a spectator while the big boys play. Shanghai Composite was at one point down over 10% in less than 2 days but now only down 8-9%...technically China had a correction in a day and a half…who said things were boring in finance. Let’s hope the short term optimism carries into the US Fed and they hopefully stoke the fires and not be a wet blanket. (VIEW LINK)
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