Australian Investment Blog

Good morning everyone Overview Yesterday the local market fell 74 points, grinding lower all day, when other major equity markets were relatively quiet ahead of the Federal Reserves' interest rate announcement. There was no stand out weakness except the weak energy sector and it simply felt like the market was "too long" and needed to square up. Over the past few weeks we have been observing how the ASX200 is following the $A in a risk-on / risk-off manner and, as many would have seen, the $A pulled back yesterday with the price of commodities. Market Matters has anticipated a rest / pullback from equities around this period; we actually believe the ASX200 is a trading buy into weakness under 5100 with stops under 5025. We would not be surprised to see a pullback in US equities after the Fed's decision that we follow, but outperform.