ASX 200 index retreat today from two-month highs as the mining sector got a big hit after the steep losses in gold. Gold price plunges the last two trading session from a record high to 1,886, giving up almost 7% in two days. Auckland has imposed some new coronavirus restrictions while Victoria reported an increase in new infections again.
Wall Street ended a seven-day winning streak as the uncertainty around a new stimulus package continues with Republicans and Democrats failed to reach an agreement. News yesterday that Russia has a coronavirus vaccine boosted stocks in early American session end gold price lower, but soon the optimism fade away.
Meanwhile, wage data disappointed investors. The Australia Wage Price Index came in at 0.2%, below the estimates of 0.3% in the second quarter, while the yearly reading for the Wage Price Index registered in at 1.8%, below the forecasts of 1.9%. The Westpac Consumer Confidence came down to -9.5% in August from -6.1% in July.
ASX 200 Daily Technical Analysis
ASX 200 is 0.11% lower at 6,132 failed for a second consecutive day at the critical 200-day moving average. A further correction towards 5,990 looks possible.
Bulls on the other hand first need to break above 6,154 the daily top and then have to break the 200-day moving average at 6,175 which would signal a continuation of the bullish pattern, targeting the next resistance at 6,212 the high from June 9.
On the contrary, initial support for ASX 200 stands at 6,101 today’s low. The next support is at 5,990 the 50-day moving average which if breached, bears would take the upper hand, and might test 5,852 the low from August 3.