ASX200 eases ahead of AU business and consumer confidence data

A strong rally on Friday helped the ASX200 close last week 1.9% higher at 7320, bringing a run of four straight losing weeks to an end.

The bulk of the last week’s gains coming from the Energy (+4.6%) and Financial (3.3%) sectors, supported by the Materials sector as the price of iron ore rebounded following the return of Chinese markets from the “Golden Week” holiday period.

However, some uncertainty has returned this morning after an unexpectedly soft U.S. jobs number on Friday that threatens to spill into earnings season.

Along with ongoing questions around energy markets, the stress in China’s financial system, unsolved U.S. fiscal issues, slowing growth, and Fed tightening.

In response to some of these issues, influential U.S. bank Goldman Sachs over the weekend, cut their forecasts for U.S. growth this year and in 2022, blaming a delayed recovery in consumer spending.

In Australia this week, we get a look at how this morning’s exit from lockdown and the formal tightening of macroprudential policy by APRA last week has affected Business and Consumer confidence in Australia.

The NAB business conditions and confidence survey for September (tomorrow 11.30 am Sydney time) are expected to improve, as is consumer confidence (Wednesday 10.30 am Sydney time) due to rising vaccination rates and reopening roadmaps.

The decline from the August 7632.8 high is viewed as a correction, not a change of trend. However, a recovery back above trend channel resistance at 7420ish is needed to indicate the correction is complete and the uptrend has resumed.

Until then, a retest of the support provided by the September 7145 low, reinforced by the 100 day moving average at 7110, remains possible.   


ASX200 Daily Chart 11 oct



Source Tradingview. The figures stated areas of October 11th, 2021. Past performance is not a reliable indicator of future performance.  This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation


From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.