Australia 200 For Thursday, May 29, 2014
To start this week the Australian 200 Index has moved away a little from the key 5500 level heading towards a short term resistance level around 5550 before easing back a little and heading back towards the key 5500 level. Over the last month or so, the Australia 200 Index has formed an amazing attraction to the key 5500 level as it spent a considerable amount of time trading around it. During last week, the index fell away heavily back down to support around 5400 before returning to the key 5500 level just as quickly, as if gravity had pulled it back. Throughout the last few weeks it has been placing ongoing pressure on the resistance level at 5500 and a couple of weeks ago it was finally able to move through to a three week high before easing back again to this key level. Several weeks ago it slowly but surely eased away from its multi-year high achieved near 5560 however the following week it fell reasonably sharply and started looking towards the 5400 level which is near where it currently sits. In doing so, it returned to back under the key 5500 level which has provided some reasonable resistance over the last few months.
For the bulk of the last few months, the Australia 200 Index has traded roughly between 5300 and 5500, therefore its return to back under 5500 was not surprising. The index has done well over the last couple of months to move steadily higher from support around 5300 up to beyond 5500, forming higher peaks and higher troughs along the way. The support level at 5300 may also be called upon should the index fall lower and will also likely play a role in providing some buffer from any decline. Since February, most of the trading activity has occured between 5400 and 5500 therefore the former level may also be called upon to prop up prices. The index has done very well over the last couple of years moving from below 4000 to its present trading levels around 5500.
Housing affordability is the best it’s been in over a decade thanks to low interest rates and easing home price rises. Affordability is at its most favorable level since March 2002, according to the Housing Industry Association/Commonwealth Bank Housing Affordability Index released on Wednesday. Affordability in the March quarter was 10.8 per cent more favorable than a year ago, HIA senior economist Shane Garrett said. That was due to low interest rates, earnings growth and a deceleration of home price increases, he said. “Increases in home prices over the past year have been significant,” according to Mr Garrett, “However, the impact of lower interest rates and continued earnings growth has ensured that home purchase affordability has improved over the past year for existing home owners and those on the cusp of entering the market in the short term.” The figures showed affordability had improved in Sydney and Perth but deteriorated in Adelaide, Hobart and Brisbane, and remained flat in Melbourne. Affordability was more favourable for existing houses than new ones but Mr Garrett said affordability was expected to continue improving.
Australia 200 May 29 at 02:25 GMT 5520 H: 5529 L: 5505
Australia 200 Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 5400 | 5300 | 5000 | 5550 | — | — |
During the hours of the Asian trading session on Thursday, the Australia 200 Index is again trying to push higher after finding support at 5500 again. For most of this year the Australia 200 Index has moved well from the lower support level at 5000 up to the multi-year highs above 5500 in the last few weeks.
Further levels in both directions:
• Below: 5400, 5300 and 5000.
• Above: 5550.
Economic Releases
- 23:50 (Wed) JP Large Retailers Sales (Apr)
- 23:50 (Wed) JP Retail Sales (Apr)
- 01:30 AU Capital Expenditure (Q1)
- 12:30 CA Current Account (Q1)
- 12:30 US Core PCE Price Index (2nd Est.) (Q1)
- 12:30 US GDP Annualised (2nd Est.) (Q1)
- 12:30 US GDP Price Index (2nd Est.) (Q1)
- 12:30 US Initial Claims (24/05/2014)
- 14:00 US Pending Home Sales (Apr)
Disclaimer: This article is for general information purposes only. It is not investment advice or a solution to buy or sell securites. opinions are the authors, not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.