Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market was positive and volatile before the RBA announcement and then gave up pretty much all the upside as the currency retraced higher as RBA joined US Fed on the sidelines. US Fed lost pretty much any credibility left in the market after turning into “violet crumble” overnight. US Fed back flipped on their two week old claim to raise rates within two months. Now they are likely to only move in Dec as we have been expecting for a while. RBA was hoping that US Fed would do their dirty work and they would ride the currency below 70 cents. RBA just got stiffed by the US Fed and now the currency is going back to 79 cents. RBA’s argument about inflation was weak at best and housing bubble is frothing at the mouth. Why we remain negative short term?…Why we remain positive medium term?… (VIEW LINK)