There isn’t too much to report here. 5800 remains key and the index is struggling to get close to 6000. It is almost as if the market would feel completely different if the index broke up through 6000 and remained there – even though it is only 100 points higher or thereabouts. In the last month or so the ASX 200 has been able to consolidate its break through the key 5800 level and in the last few weeks it has found reasonable support from this same level.
Interestingly the current price action over the last month is not too dissimilar to what we saw in January / February when the index met resistance at 5800 and found support at 5600 – with that in mind, who is to say the index doesn’t continue to trade within this narrow range for several weeks still.
The all time highs / lows reading this week is 8 / 1. The cheapest stock in the top 500 that achieved new all time highs this week – The A2 Milk Company (ASX Code: A2M) and CSL was the highest price. There was only 1 stock that has lowered itself to an all time low – Ding Sheng Xin (ASX Code: DXF).
Daily chart of S&P/ASX200 Index | Image from MetaStock
There also isn’t too much to report on the Australian dollar from last week. We know the last month or so hasn’t been a great time for the Australian dollar as it has drifted down to be trading at three month lows around 0.7350. The next obvious key level is around 0.7150 where the AUDUSD found solid support around New Years and also around 12 months ago pushing the currency pair higher again back to 0.77 on both occasions.
As we know the Australian dollar has spent considerable time in the last 12 months trading between the two key levels of 0.75 and 0.77, however you could easily picture it drifting lower before returning to that range again.
As I type this, it is currently trading around 0.7380.
Daily chart of AUDUSD | Image from MetaStock
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