The ASX 200 is sinking to the middle of its trading range, weighed down by a falling iron ore price and negative sentiment on the big 4 banks. Early market action gives no indication that the weight of these 2 sectors is about to be removed as a mill stone around the neck of the ASX 200.

Investors may remain nervous about Australian bank stocks until either the APRA report on revised capital requirement is released or prices fall further. Markets will again focus on iron ore and steel prices in China this afternoon against a background of high inventory and expectations of moderating growth in property development.

The Aussie Dollar has succumbed to the magnetic attraction of the $US 0.75 level in what will be a big data day for traders. The return to this resistance level, despite weaker commodity prices overnight, suggests the Aussie may have more scope to respond to negative than positive news with today’s data. This could come in the form of a bigger than expected drag on GDP from net exports or a worse than anticipated current account deficit. 

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.