Current trend

Australia's leading economic index ASX 200 demonstrates upward dynamics, holding in the 8069.0 region supported by the situation in the domestic bond market, as well as macroeconomic statistics.

Today, the Business Activity Report was published in Australia, according to which, as of June 30, the number of active participants in the domestic market increased by 2.8% or by 73.125 thousand, while 362.890 reported closures, which is higher than 356.216 last year. The most positive dynamics are observed in the transport, mail and warehousing ( 8.5%), health care ( 7.7%), and financial services ( 4.8%) sectors, while the most frequently liquidated organizations are engaged in agriculture and forestry (˗1.3%), as well as retail trade (˗0.2%). Nevertheless, experts note that business activity is gradually recovering, which is confirmed by August statistics: it increased from 47.5 points to 48.7 points in the manufacturing sector and from 50.4 points to 52.2 points in the service sector.

The bond market is seeing a downward correction: the 10-year bond rate fell to 3.942% from 4.095%, the 20-year rate to 4.466% from 4.567%, and the 30-year rate to 4.497% from 4.593%.

The growth leaders in the index are Nanosonics ( 19.07%), Appen Ltd. ( 4.37%), IDP Education Ltd. ( 5.52%), Woodside Energy Ltd. ( 4.17%).

The leaders of decline are Zip Co. Ltd. (˗8.37%), Deterra Royalties Ltd. (˗5.73%), IPH Ltd. (˗4.93%).

Support and resistance

On the D1 chart, the price is holding below the resistance line of the ascending channel with dynamic boundaries of 8200.0–7660.0, continuing to approach it.

Technical indicators have already completely reversed around and issued a new buy signal: fast EMAs of the Alligator indicator are moving away from the signal line, and the AO histogram is forming correction bars, holding above the transition level.

Support levels: 7990.0, 7700.0.

Resistance levels: 8200.0, 8380.0.

Trading tips

If the asset continues to grow and the price consolidates above the resistance level of 8200.0, buy positions with a target of 8380.0 and stop-loss of 8100.0 will be relevant. Implementation period: 7 days or more.

In case of a reversal and continued decline of the asset with consolidation below the 7990.0 mark, sell positions with a target of 7700.0 can be opened. Stop loss – 8100.0.