News & Analysis
AUS200 buyers back, but for how long?
The AUS200 is back in the black after Wednesday’s sharp selloff which came as surprise due to positive leads. Take it how you will, buyers emerged yesterday after the shock retail sales figures. This could have dented the market but no buyers confirmed 5654 support. Those figures look to have increased the possibility that the RBA may cut rates or at a minimum keep them on hold. The trade balance also came better than expected. Once buyers retested and bounced off 5648, support looked solid. Buyers never looked back adding 44 points to hit 5709 overnight. Sellers did engage at this point, but today buyers have resumed adding 6 points. While 5710 high holds, traders should be cautious as in previous times sellers have engaged from the midpoint of the range.
Chart snapshot for AUS200 H4 shown below.
Here’s a snapshot of AUS200 daily.