Australia 200 climbs above 8800 despite Wall Street concerns

(AI video summary)

This video was created on 6 August for IG audiences by ausbiz.

Australia 200’s resurgence

In mid-July, the Australia 200 (ASX200) climbed to a high of 8776 before entering a consolidation phase above 8600 for two and a half weeks. A robust day of trading followed, with the index gaining over 110 points, ultimately breaching the 8800 threshold. This movement occurred despite Wall Street's sell-off, indicating the local market's strength and potential for further gains toward the 8850 level.

Wall Street and US Tech 100's Elliott wave pattern

In contrast, Wall Street appears vulnerable to corrections. The US Tech 100 (Nasdaq 100), observed through the Elliott wave framework, seems to have completed its third wave, with a potential correction anticipated. The recent sell-off aligns with significant weekly trend channel resistance, suggesting an orderly pullback might position the US Tech 100 for subsequent growth phases, particularly in artificial intelligence (AI) sectors.

Commodities

Oil prices and market dynamics

Crude oil markets have experienced a fourth consecutive session of decline, influenced by Organisation of the Petroleum Exporting Countries (OPEC+) and its allies' announcements and geopolitical factors, including proposed secondary tariffs on Russian oil. Despite attempts to rally, oil prices hovered around the critical $64 level, with potential for further decline if this support is breached.

Gold's resilient comeback

Gold markets are presented with a potential upswing. Following recent consolidation between $3245 and $3450, gold has shown resilience amidst mixed economic data. If gold surpasses the $3450 resistance, it could reach the historic high of $3500, driven by a favourable environment of potential interest rate cuts.

Currencies

Bitcoin’s corrective phase

Bitcoin continues to undergo corrective phases, notably within an orderly pattern. Despite reaching a record high of 112,000, Bitcoin's latest bounce has been subdued, suggesting a potential retracement to 100,000 before resuming upward momentum. Significant resistance awaits at the 125,000 mark.

The Aussie dollar's strategic position

The Australian dollar's journey continues as it navigates important support levels between $0.642 to $0.640. Although recent United States (US) employment data provided temporary relief, looming decisions on Federal Reserve leadership and Federal Open Market Committee (FOMC) Board appointments could impact its trajectory. Market watchers anticipate news that could further influence both the Aussie and US dollar's movements.