- ASX200 under pressure, meeting strong resistance level.
- Precious metals miners doing well, commercial property weighing.
Following a mixed US session on Wall Street, (Wall Street Close: A mixed session as markets start to return scanning for COVID-19 risks), Australian shares have not got off to a good start on the return from Easter holidays and the ASX200 is down -0.33% at the time of writing (off its lows) having dropped in the open from a high of 5,469 to a low of 5,372 points.
Gold miners are the better of the index with a spike in gold prices in the US session to fresh seven-year highs. Concerns and the uncertainty pertaining to COVID-19 around economic growth and high levels of debt continue to support the yellow metal. Prices rose above USD1,700/oz to their highest level since 2012 – more on that here.
Shares in Northern Star Resources are up over 10% at the time of writing, St Barbara shares are trading 8.77% higher and Saracen Mineral Holdings are up by 6.65% but off their highs where prices were over 9% higher earlier on. Meanwhile, commercial property is a drag with Scentre Group -3.61% and Vicinity Centres -4.26%, both up from their lows of the day, however.
ASX200 meets a 38.2% Fibonacci retracement
The ASX200 has been grinding higher since the last week of March, correcting the end of February's drop from in the 7,190s. The price recently recovered from bearish divergence in the 4HR MACD drop on the 6th April from the 38.2% Fibo but bulls stepped in again, intent to test the weekly Dec 2018 lows as a key area of resistance. The index, however, struggles at this level again. To the downside, bulls will look for the 5090s support structure to hold. A break of the said resistance, however, opens risk to 5645 as the next resistance structure.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds gains above 1.0700, as key US data loom
EUR/USD holds gains above 1.0700 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
GBP/USD extends recovery above 1.2500, awaits US GDP data
GBP/USD is catching a fresh bid wave, rising above 1.2500 in European trading on Thursday. The US Dollar resumes its corrective downside, as traders resort to repositioning ahead of the high-impact US advance GDP data for the first quarter.
Gold price edges higher amid weaker USD and softer risk tone, focus remains on US GDP
Gold price (XAU/USD) attracts some dip-buying in the vicinity of the $2,300 mark on Thursday and for now, seems to have snapped a three-day losing streak, though the upside potential seems limited.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.