By Chris Becker
Well that was interesting – headline unemployment goes up – signalling that the RBA should cut rates, yet the AUD goes up and shares recover their initial losses (mostly). Well that was the initial reaction anyway…. The ASX200 eventually closed down only 0.2% or 7 points to 4483 – I’ll take a closer look at the bottom of the post including technical analysis of the bourse.
The Nikkei 225 slipped as well, down 0.6% , with the Hang Seng having another scratch day, but the Shanghai Composite slipped again also – there hasn’t been the expected rally post the week long holiday after all.
Aussie bond yields fell back a bit and remain hovering around 3%, but the real action was in the Aussie battler (AUD/USD) continues to bounce off support at 1.015 and is approaching its 200 day moving average:
The Euro/USD slipped and the US Dollar (DXY Index) gained again, and if this bounce continues onwards to 81 points, this QE3 rally could be over…remember to watch the S&P500 tonight!
Gold (USD) continues to be rangebound in a tight well, range between heavy resistance overhead at $1800USD and support at $1750USD per ounce:
Australian Stocks
No real winners or losers today, with utilities the outperformer, materials the loser, reflected in the ASX8 (the top four banks and miners) with BHP coming off nearly 1% today, and all the financials seeing light bids. Must have been the “good” unemployment print.
As for the bourse itself, heres the daily chart – we’re still on trend here but no move in prices in 5 sessions now – I’m watching the 4400 point level as closely as I’m watching the 1420 point level on the S&P500:
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Chris Becker is an investment strategist at Macro Investor, Australia’s leading independent investment newsletter covering stocks, trades, property and fixed interest. A free 21-day trial is available at the site.
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