The outbreak of equine influenza last year, coupled with the global financial crisis and a strengthening Australian dollar, will undoubtedly test an already fragile market.

However, there are signs of hope at Magic Millions, the country's premier horse sales, with strong registration numbers and a solid line-up, managing director and auctioneer David Chester told The Australian Financial Review.

"Everyone is very nervous because this is the first yearling sale of the season in the southern hemisphere after the recession and no one knows what's going to happen.

"All our usual buyers are here, domestically and internationally, and we have as big a buying bench as we have ever had, but we just don't know how much they will be willing to spend."