Rather Quiet – Market Update


After showing some fight last week moving back through the key 5800 level, the ASX200 has since drifted lower and been forced back down below this level.  It continues to be well supported by buying above 5600 and it has been able to rally above the previous trough (low) a couple of weeks ago around 5650.

Next week is the last week before the end of the financial year – it will be interesting to see whether we have an increase in trading volume and volatility across the market.  The index hasn’t moved anywhere in the last 6 months – opening the year at 5667.

The all time highs / lows reading this week is another impressive 19 / 6.   Some of the all time highs include household names again like CSL, Cochlear and Amcor, A2 Milk, and Sonic Health.   Some of the 6 stocks that fell to all time lows this week include Surfstitch, Acrux, and Toro.

Daily chart of S&P/ASX200 Index | Image from MetaStock


All the Australian dollar has done in the last week has been gradually decline and find some support around 0.7550.   Around a week ago it had several days in a row of impressive upper tails / wicks on the candlesticks indicating significant resistance to higher prices.   The peak there was at 0.7635. representing its highest price in two months.

Interestingly it is stuck in no man’s land as the two levels at 0.75 and 0.77 have both played a significant role in the last 18 months and it is as if the currency doesn’t know which way to head next.

As I type this, it is currently trading around 0.7560 (only 30 pips lower than when I wrote this last week).

Daily chart of AUDUSD | Image from MetaStock

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