Australian market dips again after decent start

Australian market dips again after decent start
By Ben Taylor (Sales Trader, CMC Markets)

Our market is trading lower in afternoon trade despite a positive start to the day as miners and healthcare stocks remain beaten up.

There is a large amount of pressure from international traders exiting our market and our dollar today. As concerns mount that China will not look to further avenues to stimulate its economy, commodity prices continue to come under pressure placing downward pressure on our market and the AUD.

The offshore selling is targeting our large materials and industrial stocks in response to our weaker Aussie, larger than expected budget deficit and the resurgence of the US markets. Last night’s weaker than expected data did little to stop the rise in the US dollar index which is benefitting from increasing chances of QE winding back.

Looking ahead to this evening, the next round of US data will be closely watched including the latest reading on Jobless Claims. Any strength in the numbers here will likely see the USD find further buying demand, which will possibly create further headwinds for both the AUD and commodity prices.

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