Sunset Strip | Aussie Afternoon Institutional Market Wrap
Aussie market started positive with miners before banks joined in to push it even more to close just above the psychological 5000 mark. The morning strength in miners was due to recent strength in Iron Ore, but the main catalysts are post Chinee New Year re-stocking and some supply side issues. Oil price showing positive signs in Asia, but really can’t see that holding up. OPEC is still holding fire on supply while non OPEC countries are screaming for a cut. Both Iron Ore and Oil likely to trend down in the short term, but market is betting on limited downside risk. RBA jawboning the currency down remains weak as currency war by the big 4 central banks are putting upward pressure on AUDUSD. RBA will be forced to cut rates as the unemployment rises with slowing economy. Property prices are going to go down as more banks move on rates out of cycle. WBC joined NAB and ANZ while we see this trend playing out a few more times in 2016..…. (VIEW LINK)
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