Australia | May 07 2013
By Ashley Jessen, director of LearnCFDs.com and author of CFDs Made Simple
The Reserve Bank of Australia hit headlines this afternoon, lowering interest rates to the lowest level since 1959 when these figures began being reported. With unemployment low the RBA has noted there is still concern over the high Aussie Dollar, which fell over 60 pips on the news to cut rates to 2.75%, with the intraday session low under 1.0200.
The S&P/ASX 200 fell 12.5 points or 0.24% to close at 5143.7 on volume of $5.2 billion with news of construction hitting a seven month low, not helping the market either.
Basic Material stocks had a field day, rising 2.56% and halting our market falling further today, following heavy falls in Consumer Goods and Financials, with the pair down 3.70% and 1.19% respectively. The other standout performer was Utility stocks who remained well in the black today, up 1.60%.
Looking over the charts
Leading into the RBA rates announcement today, the intraday price action was decidedly weak with the cut in official interest rates pushing the market up a quick 40 points, leaving day traders delighted as intraday volatility picked up. For those with eyes to the longer term, we can see accumulative buying off the intraday lows and the battle between the bulls and bears currently being won by the bulls and until we get a close below the 5120-5100 level, we should expect the uptrend to continue.
S&P/ASX 200 Gainers and Losers
Mirabela Nickel ((MBN)) topped the list for the second day in a row, rising 12.12% off the back of yesterday’s 50% gain, keeping investors at least interested in what is happening, following the rapid fall in the recent share price. Boart Longyear ((BLY)) had a very welcome session, trading higher by 8.51% after two weeks of consolidation on slightly rising volume but remains ominously close to current support levels.
Coca Cola Amatil ((CCL)) disappointed after they issued a warning on the H1 profit with the share price taking a 10.17% hit, falling to prices not seen since November last year. Coalspur Mines ((CPL)) had a lacklustre session trading down 4.84% as it tries to fight the dominant downtrend currently in place, barely hanging on to support around the $0.45 level.
(For a more comprehensive summary of last night’s market action see FNArena’s Overnight Report.)
Disclaimer: There is a high degree of risk involved in trading various financial instruments. It is possible to lose significant amounts of money when trading the markets. As your trading decisions are beyond my control, I accept no responsibility for your trading results. Please seek professional financial advice to determine if trading is for you.
While Ashley Jessen attempts to ensure that the information herein is accurate at the date the information was produced, however, Ashley Jessen does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of any of the information provided herein and under no circumstances are they to be considered an offer, solicitation to invest or be construed as giving investment advice.
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.