A pack of Australian data for November has been released during an otherwise quiet Asian session. Data turned out to be better-than-expected with retail sales increasing 1.4% MoM, instead of an expected 0.7% MoM increase, and CPI inflation accelerating from 6.9 to 7.3% YoY. Core inflation accelerated from 5.3 to 5.6% YoY. Such an outcome shows that consumers are still faring quite well and no slowdown in inflation gives reasons to continue monetary policy tightening. While RBA hinted that it may pause its tightening cycle soon, markets is now pricing an over-60% chance of a 25 bp rate hike in February. Unsurprisingly, AUD reacted positively, gaining against all other major peers. In spite of tightening being seen as negative for stocks, S&P/ASX 200 (AUS200), Australian blue chips index, was quite resilient and managed to post a solid 0.9% gain today.
Taking a look at AUS200 at D1 interval, we can see that the index is recovering from a recent downward correction that was halted at 50% retracement of the upward impulse started in mid-June 2022. Index is attempting to make a break above the resistance zone marked with previous price reactions and 23.6% retracement in the 7,125 pts area. A break above would pave the way for a test of previous local high slightly below 7,400 pts mark.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app
Source: xStation5
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
