The ASX 200 index rebounded by more than 1%, helped by technology stocks after the relatively strong Australian macro data. The ASX index is trading at A$7,017, which is slightly above yesterday’s low of A$6,927.
ASX 200 news: Australian stocks rose after data by the country’s statistics agency. The numbers revealed that the country’s unemployment rate declined from 5.7% in April to 5.5% in the previous month. This rate was better than the median estimate of 5.6%. Analysts at NAB expects the rate to remain flat. In a note, they said:
“We expect another strong increase and are tipping an above consensus 40,000 jobs and for the unemployment rate to decline 0.2 percentage points to 5.4 per cent from 5.6 per cent.”
Still, Australian stocks are being pressured by the volatility of commodity prices. After rising to a record high, the prices of iron ore and other metals have underperformed. This has pushed companies like BHP and Rio Tinto sharply lower.
The ASX 200 is being led by technology companies. AfterPay shares have risen by more than 7% after a rating upgrade by Macquarie. Other top-performing technology companies are EML Payments, Xero, Zip, and Altium. On the other hand, the worst performers were Iluka Resources, Ausnet Services, Oil Search, Pilbara Minerals, and Elders.
ASX 200 technical analysis
The daily chart shows that the ASX 200 index has struggled recently. The index is trading slightly below the year-to-date high of A$7,196. It is also slightly below the upper side of the widening channel that is shown in green. Also, it is stuck at the 50-day and 25-day moving averages while the Relative Strength Index (RSI) has been falling.
Therefore, the index will likely continue falling as bears target the lower side of the channel at 6,740. On the flip side, a move above the YTD high will invalidate this prediction.