- ASX200 holding territory in key support zone, eyes on commodities.
- the outlook for economic recovery has plenty of hope, as far as data goes.
The S&P/ASX200 index on Wednesday recovered from a poor start to finish only 0.1 of a point lower at the close of trade, at 5,221.2 points and on Thursday, the index is making further tracks back to the upside between a 23.6% ad 38.2% Fibonacci range.
Australia’s S&P/ASX 200 rallied 0.1% at 5,282.10 points in early trade and now sits at 5255, +0.66% at the time of writing. The higher moves in US crude and benchmark Brent prices following a huge collapse earlier this week was driving Wall Street higher overnight. The Dow Jones, S&P500 and Nasdaq all both ended the day at least 2.0 per cent higher on Wednesday.
Meanwhile, the preliminary data for Australia this week has given the outlook for economic recovery plenty of hope with bright spots shining through in Retail Sales and in today’s Trae Balance as follows:
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Preliminary Aussie Trade Balance: Goods exports rose $8 billion or 29 per cent in March 2020
- Australia Retail Sales (Preliminary) March: +8.2% MoM
ASX 200 Index: Finally rejected at 38.2% Fibo
The ASX 200 fell from the 38.2% Fibonacci level (5470) and below the 5310 prior support and resistance zone that was holding up the downside correction. 5100 has so far held, a touch away from 5090s target within the current support structure which bulls will seek to hold for confirmation of a run towards 5645 as the next resistance structure through prior highs. On a continuation to the downside, bears will be looking for an extension below the COVID-19 lows of 4402 for a fresh impulse in a new bearish extension of the bear market.
Commodity-FX in focus
Meanwhile, China reports 10 new coronavirus cases in Mainland as of end-April 22 vs 30 a day earlier and commodity currencies are under pressure with AUD/NZD rallying to fresh highs with AUD clinging onto gains post the trade data.
- AUD/USD stays above 0.6300 post-strong Aussie trade figures
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AUD/NZD testing highest levels since November 2019
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