Australia 200 For Tuesday, June 17, 2014
Over the last couple of weeks the Australia 200 Index has fallen back and broken back down through the key 5500 level towards a four week low around 5400. It moved strongly lower to finish out last week and is now looking at the support level at 5400 to provide some assistance in rallying back to the key 5500 level. In the couple of weeks prior it moved back and forth between the two key levels of 5500 and 5550 before the recent fall. Over the last couple of months 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. A couple of weeks ago, the index fell away 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 few 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.
Australia's unemployment rate will remain elevated over the next two years as economic growth stays sluggish, the central bank said Monday. "The Bank's latest forecasts are for employment growth to pick up gradually over the next two years," said Reserve Bank of Australia Assistant Governor (Economic) Christopher Kent. "The unemployment rate is expected to remain elevated over that period." Unemployment is expected to be falling by late in 2015 "when we anticipate gross domestic product growth to be picking up to an above-trend pace," Mr. Kent said at an event hosted by The Wall Street Journal in Sydney. Mr. Kent said recent signs of improvement in employment creation were encouraging, but said the job market might just be catching up after a moribund 2013.
Australia 200 June 16 at 23:55 GMT 5411 H: 5411 L: 5411
Australia 200 Technical
| S3 | S2 | S1 | R1 | R2 | R3 |
| 5400 | 5300 | 5000 | 5550 | --- | --- |
During the hours of the Asian trading session on Tuesday, the Australia 200 Index will be trying to rally and use the support from the 5400 level after falling heavily back down to there over the last few days to finish out last week. 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 month or so.
Further levels in both directions:
• Below: 5400, 5300 and 5000.
• Above: 5550.
Economic Releases
- 01:30 AU New motor vehicle sales (May)
- 01:30 AU RBA minutes released
- 08:30 UK CPI (May)
- 08:30 UK Input & Output Prices (May)
- 08:30 UK ONS House Prices (Apr)
- 09:00 EU Labour Cost Index (Q1)
- 09:00 EU ZEW Survey (Jun)
- 12:30 US Building Permits (May)
- 12:30 US CPI (May)
- 12:30 US Housing Starts (May)
- EU ECB Governing Council hold non-rate setting meeting
- US Federal Reserve FOMC meeting (to 18th)