- A 61.8% retracement comes in at 6015 for ASX 200.
- Bulls in charge amid hopes of a coronavirus vaccine.
Shares on the Australian market were have rallied over 1% on the heels of a mixed day, but mostly positive, from their US counterparts on Wednesday on news of a possible COVID-19 vaccine.
The S&P/ASX200 benchmark index was higher by 60 points, or 1.1%, at 5994.9 points at the time of writing.
Financials were lower at the start of the day, by 0.40 per cent, and materials dropped 0.68 per cent.
All the big four banks dropped by less than 1.0 per cent. Macquarie, Bendigo and Bank of Queensland suffered losses of the same measure. There was a similar story in mining. BHP, Rio, Fortescue, South32 and BlueScope declined by less than 1.0 per cent.
However, copper has touched a 6-month high which should help to keep optimism up.
We have now seen a turnaround as the session gets going throughout Asia as traders pick up on the news that the drug maker Pfizer said a vaccine being developed with German firm BioNTech showed promise and was found to be tolerated in early-stage human trials.
Meanwhile, a report came as the US Centers for Disease Control and Prevention reported an increase of 43,644 new cases of the coronavirus.
On the other hand, investors were encouraged by upbeat economic data as coronavirus-induced lockdowns have eased.
A report on Wednesday showed a slump in global manufacturing had ebbed in June, with US figures hitting their highest level in more than a year.
The Australian dollar was buying 69.17 US cents at the time of writing following the Aussie Trade Balance which capped the currency on a miss of expectations.
- Australia’s Trade Balance: AUD +8.025 bn (expected AUD +9bn), bearish for AUD
ASX 200 Index levels
The index is taking on fresh highs and seeking a 61.8% retracement off the mid-June drop to 5720. A 61.8% comes in at 6015. MACD is above zero as well and the price rides an impulsive rally from the 38.2% and a cross-up between the 10 and 20-hour moving averages.
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