By Chris Becker
These daily updates need to be placed in context with the longer trends and drivers amidst the overall technical picture, so head to Macro Investor for a free trial. Former “Trading Week” readers will find it reborn as “Technicals“, published 8.30am each Monday morning.
In AUD terms, it remains steady at $1541AUD per ounce as the sideways weakness looks like cracking into outright falls if it closes below $1526AUD – we are keeping a very close eye on gold in AUD terms, as this is a hedge within both our model portfolios.
You can see in the chart above that financials are finding favour, as materials continue to sell off. Which is strange, because as I revealed in this mornings weekly Macro Investor investment meeting, its the material sector that has the most “buys” across the brokers/analysts (and sells? retail…..) Something to think about in the week’s ahead.
On to the index – the ASX200 continues to stay below the 4140 level – formely support but now resistance, along with its 50 day moving average, and is likely to stay in the 4040 to 4140 trading range until some sort of risk resolution:
Tonight has 2 major data prints – German CPI – which has reported and continues to deflate, down -0.1% in June, still 1.7% year on year. Later tonight we get US trade balance figures which might shake things up a bit.
Don’t miss the overnight market updates by my colleague Greg McKenna, in MacroBusiness Morning. You can also find me rambling on Twitter here (and unlike some commentators, I’ll actually reply, if you ask nicely!)
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