CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

AU Q1 CPI preview and what next for the ASX200

April 26, 2022 5:12 AM

Tomorrow morning sees the release of March quarter Australian inflation data. It will likely be remembered as the final data point to confirm the end of an era of ultra-low interest rates in Australia and set the scene for an RBA interest rate hike as early as next month. 

After a 1.3% in the final three months of 2021, tomorrow’s number is expected to show headline CPI rose by 1.7%qoq or 4.6%yoy for the March quarter.

The RBA’s preferred measure of inflation, the trimmed mean, is expected to increase by 1.2%qoq or 3.4%yoy, taking core inflation above the RBA’s 2-3% target band for the first time since 2010.

The acceleration will be driven by higher transportation, fuel and food prices due to the floods in NSW and QLD. As well as supply bottlenecks and rising labour costs. The RBA meeting in June is now almost fully priced for a 40bp rate hike and almost 240 bp of rate hikes by year-end.

Given the expectation of aggressive RBA rate hikes, it was no surprise to see the interest rate sensitive, IT sector led the ASX200 0.7% lower last week to close at 7473 after it again tested and rejected its all-time 7632 high.

After a wild ride on Wall Street over our Anzac Day long weekend, the ASX200 is trading about 131 points or 1.76% lower this afternoon at 7342, after falling briefly below 7300 earlier in the session.

While the ASX200 remains below resistance at 7630/00 and ahead of the seasonally weaker month of May, which includes the Federal Election and possibly wider and deeper lockdowns in China which will impact energy and commodity prices, we will hold a neutral bias.

Aware that should the ASX200 lose support at 7345/25 on a two day closing basis (coming from the 200-day moving average at 7346 and previous highs), it would warn a deeper pullback is underway.

Source Tradingview. The figures stated are as of April 26th 2022. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation

How to trade with City Index

You can trade with City Index by following these four easy steps:

  1. Open an account, or log in if you’re already a customer 

    • Open an account in the UK
    • Open an account in Australia
    • Open an account in Singapore

  2. Search for the company you want to trade in our award-winning platform 
  3. Choose your position and size, and your stop and limit levels 
  4. Place the trade

 

 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024