CME Group, a low beta stock at 0.17 as measured against the S&P 500 has started to show positive elements, thus it can offer diversification benefits against current market risk such as U.S-China trade tension.
The AUS 200 consists of the largest 200 companies on the Australian Stock exchange and can be a good gauge of local investor sentiment. The larger the company by market capitalization, the greater its influence on the index. Australian mining stocks dominate the mix, along with a few large banking stocks.
Price drivers
Australia is a resource-based economy. Thus, global commodity demand, chiefly base metals, can have a significant impact on this index. Demand from China is particularly important for Australia’s mining sector, so the health and trade relationship with the world’s second largest economy should be taken into account when looking at the AUS 200. The Aussie dollar can also impact price action, as a high local dollar makes Australia’s goods less competitive. Also worth considering is the fiscal position of the government, monetary policy, the health of the global credit market (Australian banks rely heavily on offshore credit markets) and sentiment.
Distance shows the difference between the pivot point and bid rate. It is calculated by subtracting the ask rate from the pivot point rate.
Bid
Ask
Daily
HIGH
LOW
Close
R3
R2
R1
S1
S2
S3
Weekly
HIGH
LOW
Close
R3
R2
R1
S1
S2
S3
Monthly
HIGH
LOW
Close
R3
R2
R1
S1
S2
S3
Understanding Pivot Points
Pivot points are used by traders as a predictive indicator and denote levels of technical significance. When used in conjunction with other technical indicators such as support and resistance or Fibonacci, pivot points can...Read More
