- The Australian Stock Exchange 200 has rallied a bit during the trading session on Monday as we initially did pull back just a bit only to turn around and show signs of life.
- The market does continue to look very bullish and therefore I do think it's probably only a matter of time before we go looking to the 8,500 Australian dollars level.
- Short-term pullbacks continue to attract attention, but we also have to keep in mind that early in the day on Tuesday we have the Reserve Bank of Australia and its interest rate decision.
Now, the decision itself probably isn't the story. The story is probably going to be found in the statement. The question is whether or not the RBA remains hawkish, doveish, sideways, whatever. It's very likely that they will remain as steady as she goes. And if that's the case, then I think the ASX 200 could continue to enjoy fairly loose monetary policy, at least looser than it once was. But I also would pay close attention to the commodity markets overall.
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After all, the ASX 200 is chock full of a lot of materials giants and the price of copper and other things like that obviously come into play. The Asian economy is suffering a bit. So, another thing that will have a peripheral influence on the Aussie markets is what the People's Bank of China is getting ready to do people believe that there is a lot of stimulus coming out of Beijing.
If that ends up being the case, that has a direct influence on how many things Australians can sell to the Chinese. It is an uptrend. I think at this point in time, that's probably the most important thing to pay attention to. So I like the idea of buying dips, but I recognize that early on Tuesday, we might have a bit of volatility.
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