Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market was once again volatile before finishing slightly positive on another day with very little sentiment and news flow ahead of the Brexit vote. The Brexit vote is in play now…but we won’t know the result till after lunch tomorrow…if it’s close….then we won’t know the result till the close of markets tomorrow. Markets have priced in no Brexit….if there is Brexit…it will be ugly…but betting odds, currency, bond yields are all pointing to no Brexit. Assuming no-Brexit, we have seen the low in AUDUSD till RBA cuts rates in August…going higher short term…next technical level is 78 cents again. We see a rotation from resources into banks in the next few weeks as the rising currency, low yields and subsiding macro worries forces the growth to yield trade. Spot gold is expected to have a short pullback on Brexit getting voted down…will offer another opportunity to get in the long term thematic for gold!!! (VIEW LINK)