Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market pulled back after an opening pop before making a slight recovery to finish negative. The global markets are in a confused state as indices reach stretched valuation levels on low interest rates while FOMC update overnight was clear as mud. We remain of the view that FOMC missed their chance to raise in March and have been chasing their tail ever since. Weak GDP and inflation data means that they will wait for the next quarter to confirm data and the election cycle before moving….i.e. Dec is the only hope and that assumes that nothing else goes wrong in the meantime. The weak inflation data on top of the weak GDP data means that FOMC will not be moving in Sep despite jawboning by Fed presidents and strong Job market in the US…IT PAYS TO TAKE ON THE FED!!! Interesting moves of the day…....…. (VIEW LINK)