- ASX 200 traders await the Chinese data dump, which will matter fo commodities such as iron ore.
- Risk-on and good COVID-19 news headlines underpins the index at key resistance.
The benchmark S&P/ASX200 (^AXJO) climbed at the open and extended gains on Friday in lockstep with a solid performance on Wall Stree. The index is currently trading at 5,547 having travelled from a low of 5,416 to a high of 5549 thus far.
US futures jumped in early Asia propelling the ASX200 on holes of virus treatment: S&P 500 ETF jumping 2% on report Gilead drug showing effectiveness treating coronavirus. The news that the drugmaker Gilead reported an antiviral treatment was marked as driving “rapid recoveries in fever and respiratory symptoms”, which sent Gilead stock 14 per cent higher and set a risk-on tone for the session today ahead of key economic data from China at the top of the hour.
ASX 200 Index: China data will matter
We will have a data dump of industrial production, retail sales and fixed asset investment which investors will be paying particular attention to see how badly the COVID-19 has impacted the economy.
- When is China’s Q1 GDP and how could it affect the AUD/USD?
Meanwhile, globally “the number of new COVID-19 infections seems to have peaked on 4 April. This could mean the apex of the crisis is passing, and more attention needs to be given to the nature of the recovery,” analysts at ANZ Bank suggest, which is opening the pathway for nations getting the businesses back to work to mitigate further global economic turmoil.
As for commodities, they still struggled despite some of the more positive tones and Iron ore prices have dropped ahead of key economic data in China today. ” Disruptions earlier in the year have abated, with shipping data indicated strong growth in exports from Australia. The impact of weak demand outside of China is also weighing on sentiment. Japanese steel mills. JFE Steel said its suspending several furnaces after the government called a state of emergency and forced many industries to close,” analysts at ANZ explained.
ASX 200 Index: 38.2% remains an obstacle
The ASX 200 is still battling with the 38.2% Fibonacci level. 5645 as the next resistance structure is still on the map though. To the downside, bulls will look for the 5090s support structure to hold.
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