15 Oct 2009 – More rate hikes coming

ASX Commentary

15 Oct 2009 – More rate hikes coming

Fri, Oct 16, 2009

Market internals were a little weaker today with Advance/Decline standing at 1.28. The market jumped out of the gate hard on the positive US lead but was unable to hold the early gains. The RBA Governor reiterated that further rate hikes will be along sooner rather than later which placed further support under the AUD. The Sydney Futures Exchange has priced in 2 more rate hikes before Christmas. The strengthening currency will play a negative role in some materials/energy sector stocks in the coming months. On a more positive not our momentum indicator turned back to UP for the first time in a while. All three technical filters are now aligned.

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Nick Radge - who has written 899 posts on The Chartist.

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