ASX 200 index retreat today as investors took some profits off the table after the Federal Reserve in its latest minutes noted the uncertainties in the U.S. economy.
FOMC said the coronavirus crisis weighing on the economy and threatens the medium-term outlook. The rebound in employment the previous months had slowed down recently after the rising new coronavirus infections in many States. Several FOMC members support further accommodation while the interest rates stay at current levels until the end of the year. The monetary policy committee also raised concerns over the potential benefits of the yield curve control.
The energy sector in ASX was the worst performer, while Financials and Healthcare care sectors were also under selling pressure. Technology and real estate provide a better picture. Qantas airlines reported sharp losses of 2.7 billion and a massive drop in revenues amid the coronavirus pandemic.
On the coronavirus front, Victoria State reported 240 new coronavirus infections and 13 deaths in the last 24 hours.
In the China – Australia trade war, the Australian government announced that it is considering to block the acquisition by a Chinese company some of the country’s best-known dairy products.
ASX 200 Daily Analysis
ASX 200 is 0.88% lower at 6,113 as the index failed for one more time to break above the 200-day moving average. That was the fourth failure in the last ten trading days. The last time the ASX was above that mark was on March 9, before the coronavirus sell-off.
Looking at lower levels for ASX 200 in the daily chart, support is at 6,096 today’s low. A break below 6,096 might test the next support level at 6,068 the low from August 18. More bids await at 6,000 round figure.
On the contrary, resistance for ASX 200 stands at 6,162 the 200-day moving average. More selling pressure would emerge at 6,200, while a break above 6,220 the high from March 9.
ASX 200 Daily Chart