ASX 200 index trades lower despite the positive close in Wall Street as investors see that the new coronavirus cases continue to rise despite the recent restrictions. Victoria reported a new record of 725 new infections and 15 deaths. New South Wales reported 12 new cases.
A positive tone in markets came as China and USA will have a high-level teleconference on August 15 to discuss China’s compliance with the phase one trade deal signed in January.
The economic data today also doesn’t help as the services sector still lagging the manufacturing sector. The Australia Services PMI registered in at 58.2 slightly below 58.5 in July. The Composite PMI came in at 57.8 below the June reading of 57.9.
On the real estate front, The AiG Performance of Construction Index climbed to 42.7 in July from 35.5 in June. Investment Lending for Homes increased by 8.1% in June after a -15.6% reading in May. Home Loans rose to 7.1% in June from previous -7.6%.
Chinese data also disappointed as the Caixin Services PMI came in at 54.1 below the forecasts of 56.8 in July.
Asian indices looking for direction today; the Nikkei ended 0.26% lower at 22,514. The Hang Seng is 0.34% higher at 25,027, while the Shanghai Composite is 0.11% higher at 3,375.
ASX 200 Daily Technical Analysis
ASX 200 gives up some of yesterday’s gains and is 0.60% lower at 6,001 after it tested the 50-day SMA at 5,962 and bounced above the 6,000 mark. The technical outlook remains neutral for the short term. Bears need a break below the 50-day moving average that would attract more sellers. The critical support for ASX 200 stands at 5,619 the 100-day moving average.
On the upside, initial resistance for the index is at 6,037 the daily top. A break above would meet the next hurdle at 6,119 the high from July 28. The next stiff resistance stands at 6,191 the 200-day moving average.