Australia | Apr 23 2014
New five and half year highs on the Aussie 200 with the Aussie Dollar breaking support at 93 cents, as Australian Inflation data (CPI) comes in lower than expected at 0.6%.
What are traders talking about today?
S&P/ASX200 gained 38.5 points or +0.70% on volume of $4.1 billion, closing at 5517.8.
The Aussie Dollar has been unable to hold the 93 cent handle, falling to 0.9280 against the USD, following the lower than expected CPI data, with immediate support at 0.9320 being broken as well.
Traders going long the British Pound versus the Aussie Dollar would have been in for a nice surprise following CPI data with the GBPAUD rising over 150 pips in 30 minutes.
The US has sent over 600 troops as tensions in the Ukraine and Russia continue to escalate and this will definitely be one to watch over the next few days.
Germany’s DAX index is fast approaching recent highs but is sitting precariously on the 4th consecutive potential lower high and will be one to watch over the next few trading sessions.
Gold continues to hover around support at $1275-$1285 as it sits on a double bottom. If it can hold these levels then there is a sound possibility for it to climb back up to resistance at $1330 and a break through that level would see an option to hit $1390 per ounce.
Economic news
HSBC China Flash Manufacturing PMI data came out slightly lower than expected today, coming in at 48.3 versus 48.4 expected.
Australian Inflation figures (CPI) came out today lower than expected, which is a positive for consumers, suggesting things are getting cheaper, but the effect on the Aussie Dollar was a sharp 60 pip drop. CPI hit 0.6% versus 0.8% expected and 2.9% year on year.
Australian sector watch
Looking over the charts
Another bullish follow through session on the Aussie 200 index with our market pushing through to the highest price since June 2008. We can also note the positive close above the 5500 level for the first time since then as well.
Stochastics are hitting overbought territory but as mentioned yesterday, this oscillator is less reliable when the market breaks into new highs, as it will consistently be showing an overbought condition. At this stage, bearish followers will be looking for potential signs of bearish divergence and we’ll keep an eye on that as well.
Within the first 90 minutes our market hit an intraday high just above 5520 before some early profit taking stepped in, but those profit takers were short lived with more buying action supporting the price above the 5505 level.
As for the recent euphoric market, the Aussie and other world markets haven’t really had any sort of blow off top to signal the true extent of the current 5 year bullish run.
ASX top 200 stock analysis
15% of stocks are showing oversold levels, 39% are showing overbought levels and 62% of stocks are currently above their long term moving average as of close of trading today.
S&P/ASX 200 Gainers and Losers
Top 5 gainers:
- HZN HORIZON OIL +10.45%
- RSG RESOLUTE MINING +6.90%
- EVN EVOLUTION MINING +6.06%
- LYC LYNAS CORPORATION +5.71%
- MFG MAGELLAN FINANCIAL GROUP +5.54%
Top 5 Losers:
- AGO ATLAS IRON -3.05%
- WTF WOTIF.COM HOLDINGS -2.14%
- MYR MYER HOLDINGS -1.78%
- ORA ORORA -1.77%
- MIN MINERAL RESOURCES -1.76%
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Technical limitations
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