ASX 200 Morning Market Outlook: Bad News Is Good News for ASX
ASX 200 rallies to a record high as rising unemployment boosts RBA rate-cut bets, with Real Estate and Health Care leading the charge.
Share this:
The ASX 200 climbed to a record high on Thursday as traders embraced the idea that weaker labour market data could hasten an RBA rate cut. Australia’s unemployment rate rose to a four-year high, fuelling optimism that policy easing may arrive sooner than expected. Nine of the eleven ASX sectors advanced, led by Real Estate and Health Care, while Info Tech lagged amid a burst of volatility.
View related analysis:
View related analysis:
ASX 200 Climbs to Record High on Rising RBA Rate-Cut Hopes
ASX 200 Cash Market Snapshot
- Band news was good news for ASX 200 traders on Thursday, with unemployment rising to a 4-high spurring bets of an RBA cut and sending the local share market to a fresh record high.
- The ASX 200 rose for a third day during its most volatile day’s trade in two weeks
- 9 of the 11 ASX sectors rose, led by Real Estate (XRE) and healthcare (XHJ), while tech (XTJ) was the laggard
Chart analysis by Matt Simpson - data source: ASX, LSEG
ASX 200 Sector Analysis
The real estate sector (XRE) enjoyed its best day in six months with a 2.7% gain, breaking above a bearish retracement line and suggesting the pullback from its August high has ended. Healthcare (XHJ) shares rose for a second day to reach a seven-week high, further supporting the view that September’s low marked a key turning point.
Chart analysis by Matt Simpson - Source: ASX, LSEG
Goodman Group (CMG) Technical Analysis
The weekly chart shows a strong rally from the April low began to retrace in August, though support was found around 32.50. Three swing lows have been seen around that level, the latter two of which are higher lows. Thursday say a clear gap higher above the 200-day EMA followed by bullish range expansion. I strongly suspect we have seen the corrective low and momentum has realigned with the bullish move from the April low rally.
Chart analysis by Matt Simpson - Source: ASX, TradingView, Goodman Group (CMG)
ASX 200 Futures (SPI 200) Technical Analysis
A bullish engulfing day has formed on the ASX 20 futures chart. But with Wall Street turning lower overnight, I suspect gains could be limited today ahead of the weekend. That said, support was found around the August high and weekly R1 pivot point. Perhaps a near-term bonce is due head of a pullback.
Chart analysis by Matt Simpson - Source: TradingView, ASX SPI 200 Index Futures
View the full economic calendar
View the full economic calendar
-- Written by Matt Simpson
Follow Matt on Twitter @cLeverEdge
How to trade with City Index
You can trade with City Index by following these four easy steps:
- Open an account, or log in if you’re already a customer
• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
- Search for the market you want to trade in our award-winning platform
- Choose your position and size, and your stop and limit levels
- Place the trade
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
S&P 500, Nasdaq 100 Claw Back But NVDA Cloud Looms Overhead
Last week was green for both the Nasdaq and S&P 500 but given the sell-off that led into that bounce there’s still a very real question as to whether bears still have a statement to make. And the NVDA situation presents a very real threat.
Nvidia Earnings Preview: NVDA’s First Test of the Post Jenson Huang Era
Nvidia is expected to report $2.47 in EPS on $108.8B in revenue this quarter, but investors will be more interested in the company's guidance after the unexpected departure of founder and CEO Jenson Huang.
US dollar forecast: USD/JPY and USD/CHF in focus | Forex Friday
Sticky US inflation and a hawkish Fed have kept the dollar firm across the majors, with USD/JPY pressing on the 160 handle. Here are the levels that matter on USD/JPY and USD/CHF as next week's retail sales, Nvidia results and FOMC minutes approach.
The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.