Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market started positive on positive global sentiment before giving up half the gains as the day went on. The market realised that the ECB has thrown everything on the table and will be accommodative for few years of low growth. PBOC is on media frenzy mode to explain allowing the Yuan fall after negative data without doing more stimulus for now. BOJ is expected to deliver their latest view on the economy tomorrow and we don’t expect much on this front. US Fed on Thursday morning is what it’s all about. If the US Fed turns dovish and stays put, we expect AUDUSD to make a step up and drag all the yield stocks with it. If the US Fed takes the rates higher, then AUDUSD will fall with the markets. The US Fed could downgrade and keep rates on hold but remain hawkish on rates. That will also trip the markets as expectations are for 1-2 rate rises in 2016 while US Fed has 4 in mind.…. (VIEW LINK)