It seems as both the ASX200 index and AUDUSD are moving based on key levels presently.

ASX200

The index has responded well this week after spending the last few weeks easing off a little.  It has enjoyed some solid support from a new key level at 5600 for the last couple of weeks, which provided some resistance over the last six months or so.   The high a few weeks ago above 5800 was close to a two year high which reflects how well the market has been performing.

The all time highs / lows reading this week is 3 / 5.  There were 3 stocks in the top 500 that achieved new all time highs this week and the largest of those is again AGL, and the cheapest Nick Scali (ASX Code: NCK).   There were 5 stocks that have lowered themselves to all time lows with the highest price Integral Diagnostics (ASX Code: IDX).

Image from MetaStock

AUD/USD

As you probably know, the RBA decided earlier this week to leave the official cash rate at 1.5%, stating that “Conditions in the global economy have improved over recent months”, however Australian inflation “remains quite low”.  The AUDUSD saw an initial surge higher within minutes pushing it back up to around 0.7680 before falling strongly to near 0.76.   You can read the RBA’s statement here.

The Australian dollar has enjoyed some higher prices in the last week or so but remains under the present key level of 0.77.  Any time it has gone close to this level, it has been sold off reasonably strongly, on the basis that it was the previous key resistance level throughout the second half of last year.

After having provided some support a few weeks ago, it will be interesting to see whether the 0.75 level plays a role again in the near future and continues to keep the Australian dollar in the top half of the 70 cents – 80 cents range.

As I type this it is trading around 0.7645.

Before I go … 

I recently heard about a new website – www.sharestart.com.au – which I have no connection to.  ShareStart has a simple premise – they profile ASX listed stocks to answer a very simple question: what does the company do?   It comes from a frustration of not being able to easily find an unbiased explanation of a company’s activities.  They assure me it’s a free service and always will be.

Stuart McPhee
Stuart McPhee
Australian private trader for nearly 20 years, author, trading coach, licensed adviser and regular speaker at major trading events all around the world. Graduate of RMC Duntroon and former Australian Army Officer.