Skip to content

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

ASX 200 afternoon report: 7 November 2023

Your ASX 200 afternoon report.

Source: Bloomberg

ASX 200 rebounds on dovish RBA rate hike

At its board meeting today, the Reserve Bank of Australia (RBA) raised its official cash rate by 25bp to 4.35%, its first rate rise since June.

While the upside surprise in Q3 inflation data meant market commentators were widely expecting today's move, markets were less certain, with the interest rate market assigning a 58% chance of a rate hike.

The discrepancy between commentators and the rates market reflected the uncertainty created by recent discussions in political circles as to whether the Q3 upside inflation surprise represented a material change to the RBA's inflation outlook.

Credit to new RBA governor Michele Bullock, who looked through the unpleasantries and political noise to ensure the RBA remained committed to its objective of ensuring inflation returns to target. The RBA retained its tightening bias. However, it was watered down from:

"Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve."

To

"Whether further tightening of monetary policy is required to ensure that inflation returns to target in a reasonable timeframe will depend upon the data and the evolving assessment of risks. "

The change in language suggest that the incoming data will need to be red hot for the RBA to act on its tightening bias, including

- Q3 wages data (Wednesday, 15 of November 2023, AEDT)
- October labour force report (Thursday, 16 of November 2023, AEDT)
- October retail sales (Tuesday, 28 of November 2023, AEDT)
- October monthly CPI indicator (Wednesday, 29 of November 2023, AEDT)

Ahead of this afternoon's announcement, the ASX200 was trading 30 points lower at .6967. Following the RBA's dovish rate hike, it has partially recovered to be trading 14 points lower at 6984 at 3.40 pm.

Today’s market movements

IT sector

The best-performing sector has been the IT sector, led by

  • ZIP +2.67% to $0.39c
  • Wisetech +1.58% to $61.58
  • Tyro Payments +1.28% to $0.99c
  • Xero +1.20% to $113.16.

Consumer discretionary stocks

Consumer discretionary stocks have gained as the prospect of future rate hikes diminishes.

  • Nick Scali: +1.51% to $11.41
  • Domino's Pizza: +1.52% to $53.50
  • Super Retail Group: + 0.83% to $13.43

Banking sector

The big banks have fallen as the market ponders the probability of lenders passing on the RBA's full 25bp rate hike to mortgage holders, and as some of the gloss comes off Westpac's trading update.

  • Westpac: - 2.42% to $21.39
  • Macquarie: -1.40% to $159.39
  • NAB: -1.07% to $29.03
  • ANZ: -1.05% to $25.47
  • CBA: - 0.35% to $100.70

Resources sector

A larger-than-expected fall in China's trade surplus to $56.53 bn in October from $77.71bn in September was unable to prevent gains for the iron ore giants.

  • Rio Tinto: + 0.51% to $122.13
  • Fortescue: + 0.39% to $123.33
  • BHP: + 0.39% to $45.61

ASX 200 technical analysis

Last week's close above 6950 negated the technical damage following October's sell-off. If the ASX 200 can close above 7000, it will provide a platform for the ASX 200 to test the 200-day moving average at 7200, with scope to range highs at 7400.


ASX 200 daily chart


Source: TradingView
  • Source Tradingview. The figures stated are as of 7 November 2023. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market.

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities
website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

" >


Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.


For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of spread betting and CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.