Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Indexes  >  Sydney-S&P/ASX 200    XJO   

End-of-day quote. End-of-day quote  - 06/23
5715.9   +0.17%
06/23DJMARKET SNAPSHOT : Stocks Close Mostly Lower As Financials, Consumer ..
06/23DJStocks Struggle to Find Traction
06/23DJStocks Struggle to Find Traction
Analysis summary4-Traders Strategies 

Is Australian economy in decline ?

share with twitter share with LinkedIn share with facebook
share via e-mail
11/23/2012 | 09:29am
Opinion : Bearish under  4450
Target price :  4300 Potential: 2.25%

Australian financial investors begin to doubt the country's ability to tackle a new global economic slowdown. In this context of economic uncertainty the central bank of Australia suggested again that it would make a further rate cuts, after having cut the borrowing costs of 1.5 points in one year.

The RBA (Reserve Bank of Australia) surprised markets early November by observing the status quo on its monetary policy, it said last week that further easing would be appropriate in the future. In fact Members of the Bank noted a slowing of the economy according to lower indicators than the ones released in the previous quarter.

Meanwhile, the Australian Treasurer, Wayne Swan, has lowered its growth forecast for the year 2012/2013. He is now expecting an increase of 2.5% of GDP against 3.25% earlier. According to him, the prospect of low global growth and lower prices of raw materials will "slow the recovery of our revenues from taxes". In addition, the strength of the Australian dollar tends to weigh heavily on workforce as the unemployment rate rose to its highest level in three years in November to 5.7%. Australia is about to face more difficult days and investors remain concerned by external imbalances.

Technically, the short-term trend is now bearish in daily data below 4400/4450 points which refers to the 20-day moving average. The rebound is expected to continue in the short term up to levels where the most aggressive traders could open new short positions to target a new test of the 4300/4335 support. A weekly break below this level would signal the beginning of a key bearish dynamic in the medium term. Conversely, a positive reaction on these levels will allow the Australian index continue its evolution in the weekly trading range 4300/4550 points. The bearish scenario can be traded using future market S&P / ASX 200 Index Futures (code: SPI).

Sydney-S&P/ASX 200 : Is Australian economy in decline ?

© Zonebourse.com 2012
share with twitter share with LinkedIn share with facebook
share via e-mail

Disclaimer: 4-traders.com is a website published by SURPERFORMANCE SAS. Surperformance or 4-traders.com is not a registered broker-dealer nor a registered investment adviser. You understand that this web site and its content is furnished for your personal, noncommercial, informational purposes only, and that no mention of a particular security in this website constitutes a recommendation to buy, sell, or hold any other security, nor that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Surperformance and 4-traders.com services will not advise you personally concerning the nature, potential, value or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Information regarding trading and investment as provided by Surperformance professional is not tailored to the investment needs of any specific person. You acknowledge that you are responsible for your own financial decisions and should seek a registered financial agent depending on your own risk tolerance to advise you on your personal trading activities.

Chart SYDNEY-S&P/ASX 200
Duration : Period : Day
Sydney-S&P/ASX 200 Technical Analysis Chart | XJO | 4-Traders
Duration : Period : Week
Sydney-S&P/ASX 200 Technical Analysis Chart | XJO | 4-Traders