Fed rolls up its sleeves to cut. RBA done cutting. Aussie employment roars higher. Why you need to watch the themes of stocks hitting new highs

THIS IS GREAT NEWS FOR MARKETS, at a time when the economy remains somewhat strong and AI is at its anthesis in driving innovation, change, efficiency and the creation of new ways of life. Speaking of AI, these are just some of the takeaways from Nvidia's $NVIDIA (NVDA.US)$conference where collaborations and ties were strengthen with big tech companies and big pharma.

In Australia, today received confirmation that the RBA might not need to cut rates this year. But let's see as the situation evolves. Today we learnt Australian employment is far stronger than expected with jobs surging 116.5k vs 40k estimated in February, while the unemployment rate tumbled back to 3.7% vs it falling to 4% as the market expected. This comes just days after the RBA hinted it sees no further rate hikes and removed it tightening basis from its statement. As it stands now, Australia’s big four banks see rate cuts in 2024.

- CBA $CommBank (CBA.AU)$ : Three cuts in 2024 with the first in September

- Westpac $Westpac Banking Corp (WBC.AU)$ Two cuts in 2024 with the first in September

- NAB $National Australia Bank Ltd (NAB.AU)$ : One cut in 2024 in November

- ANZ $ANZ Group Holdings Ltd (ANZ.AU)$ One cut in 2024 in the fourth quarter

- Tech stocks and consumer discretionary names: Life 360 $Life360 Inc (360.AU)$. Webjet $Web Travel Group Ltd (WEB.AU)$

- Property groups and developers Centuria $Centuria Capital Group (CNI.AU)$, Charter Hall $Charter Hall Group (CHC.AU)$ Scentre Group $Scentre Group (SCG.AU)$

- Metals stocks Sandfire $Sandfire Resources Ltd (SFR.AU)$ Orica $Orica Ltd (ORI.AU)$

- Gold miners Bellevue Gold $Bellevue Gold Ltd (BGL.AU)$.For more on gold and why I believe more upside is ahead..

- Companies tied to the US; Reliance Worldwide $Reliance Worldwide Corp Ltd (RWC.AU)$ (it makes 77% of revenue from the US), Biotech Telix $Telix Pharmaceuticals Ltd (TLX.AU)$ (makes 97% of revenue from the US).

Aussie dollar against the US dollar moved back to two month high neighborhood as investors digest very strong Aussie jobs data and the likelihood of the Fed making rate cuts this year. So FX traders will be contending with the RBA likely leaving rates were they are (imo) vs the Fed likely cutting. So that supports a higher Aussie dollar, at a time when news out of China can only potentially get better (and not worse) which supports industrial metal demand and thus the Aussie dollar. For more on why I think industrials metal prices will move up, click here.