ASX 200 Forecast: ASX 200 Continues to See Support

• During my daily analysis of global indices, the ASX 200 has shown itself to be important as we initially pulled back to reach the AU$8100 level, only to turn around and show signs of life.
• By doing so, it looks like we are trying to stay within the consolidation area the wood been in for some time now, and of course it is worth noting that the AU$8100 level has been important multiple times.
• therefore it’s likely that we will continue to see this area attract a lot of attention in general.

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Australia and Risk Appetite

Going forward, you should pay close attention to the fact that Australia is highly sensitive to risk appetite as it is considered to be a commodity driven economy, and of course we have a situation where traders will pay close attention to Asia as well. It is worth noting that the Reserve Bank of Australia chose to keep interest rates still overnight, and this suggests that the market will continue to see the Australian economy as being somewhat robust, but we also have to worry about the risk appetite when it comes to the Federal Reserve on Thursday. After all, the interest rates in America have a major influence on what happens next with the global economy, as the US dollar of course is what almost everything is priced in.

If we turn around a breakdown below the AU$8000 level, that would be a sign that there is a lot of fear out there, and an almost certainly would mean that the stock markets around the world would probably struggle. Australia will be sensitive to what happens in America on Wall Street, so keep that in mind. I believe that the next day or two in this index will be very difficult to grasp, but it’s worth noting that the longer-term trend is most certainly to the upside so one would assume that sooner or later the buyers show up again to take advantage of value. After all, the Australians were confident enough to keep interest rates where they are.

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