Financial Trade Freedom - Investing and Stock News
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
No Result
View All Result
Financial Trade Freedom - Investing and Stock News
No Result
View All Result
Home Investing

ASX 200 Index double top after the surprise RBA rate decision

admin by admin
July 8, 2025
in Investing
0
ASX 200 Index double top after the surprise RBA rate decision
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

The ASX 200 Index moved sideways on Tuesday after the Reserve Bank of Australia (RBA) caught the market wrong-footed by leaving interest rates unchanged. It was trading at A$8,570, down from the day-to-day high of A$8,623.

RBA interest rate decision 

The ASX 200 Index, which tracks the biggest companies in Australia, remained in a tight range at a crucial resistance level after the RBA left its interest rates unchanged at 3.85%.

The interest rate pause was notable because most analysts were expecting it to cut interest rates by 25 basis points. It left rates intact at 3.85%, citing the persistent inflation concerns.

The RBA noted that the economy was strong and that it could wait fo a little more time to confirm that inflation remained on track to reach the 2.5% target. Michelle Bullock, the RBA Governor, said:

“The Board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5 per cent on a sustainable basis. It noted that monetary policy is well placed to respond decisively to international developments if they were to have material implications for activity and inflation in Australia.”

The RBA has been more cautious this cycle. It avoided rate cuts in 2024 as many banks, including the Federal Reserve and the European Central Bank (ECB) reduced their rates. Still, analysts anticipate that the bank will cut interest rates in August and at least two more times this year. An RBC analyst wrote:

“It’s a shock for the market that July hasn’t been delivered, but key language around inflation suggests they’re just kicking the can down the road to August which is pretty much a ‘lock’ now to the market.”

The ASX 200 Index also wavered after Donald Trump sent a series of letters to countries, warning them about tariffs. Australia was not in that list, and analysts expect it to be fairly safe.

Trump imposed a 10% tariff on all goods from Australia during his Liberation Day speech in April. This made it one of the least affected countries. Additionally, the total volume of trade between the US and Australia is relatively small, amounting to $51 billion. The US sold goods worth $34.6 billion to Australia and bought $16.7 billion. 

Indeed, some analysts at the Australian Productivity Commission noted that the country would benefit from the tariffs. It expects a GDP boost of 0.37%, citing cheaper imports from other countries and capital flows to Australia.

Australian banks were mixed after the RBA interest rate decision. National Bank of Australia (NAB) and Commonwealth Bank of Australia (RBA) shares jumped by 0.37%, while Westpac stock fell by 54 basis points. 

ASX 200 Index analysis

ASX Index chart | Source: TradingView

The daily chart shows that the ASX 200 Index has bounced back in the past few months. It moved from a low of A$7,267, its lowest level in April to a high of A$8,580, where it is today.

The index has remained above the 50-day and 200-day moving averages, a sign that bulls are in control. However, it has formed a double-top pattern at A$8,623 and a neckline at A$7,267. 

Therefore, the index will likely pull back in the coming days if the double-top pattern works. If this happens, the next level to watch will be at A$8,400, the 50-day moving average. A break above the resistance level at A$8,623 will invalidate the bearish view and point to more gains, potentially to A$9,000.

The post ASX 200 Index double top after the surprise RBA rate decision appeared first on Invezz


Previous Post

USD/INR forecast: Here’s why the Indian rupee is falling

Next Post

Moderna stock rallies on HHS lawsuit news: analyst says negative sentiment reversing

Next Post
Moderna stock rallies on HHS lawsuit news: analyst says negative sentiment reversing

Moderna stock rallies on HHS lawsuit news: analyst says negative sentiment reversing

  • Trending
  • Comments
  • Latest
U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

February 19, 2025
How Companies Use Derivatives To Hedge Risk

How Companies Use Derivatives To Hedge Risk

February 19, 2025
KFC moves U.S. headquarters from Kentucky to Texas

KFC moves U.S. headquarters from Kentucky to Texas

February 19, 2025
Nvidia shares continue golden run, hit fresh highs: analysts remain firmly bullish

Nvidia shares continue golden run, hit fresh highs: analysts remain firmly bullish

June 27, 2025
Tariff turbulence ahead: can airline stocks stay aloft?

Tariff turbulence ahead: can airline stocks stay aloft?

0
From tariffs to DOGE, what companies are saying about the impact of MAGA policies

From tariffs to DOGE, what companies are saying about the impact of MAGA policies

0
Tesla’s law firm drafts Delaware bill that could salvage Musk pay package

Tesla’s law firm drafts Delaware bill that could salvage Musk pay package

0
Coca-Cola takes on Olipop and Poppi with new prebiotic soda brand, Simply Pop

Coca-Cola takes on Olipop and Poppi with new prebiotic soda brand, Simply Pop

0
Tariff turbulence ahead: can airline stocks stay aloft?

Tariff turbulence ahead: can airline stocks stay aloft?

July 10, 2025
Delta Airlines stock surge 13% after Q2 beat expectations, reinstates outlook

Delta Airlines stock surge 13% after Q2 beat expectations, reinstates outlook

July 10, 2025
PayPal stock price analysis: beware of a major risk

PayPal stock price analysis: beware of a major risk

July 10, 2025
Jensen Huang’s China gambit: Nvidia bets on AI growth amid geopolitical crossfire

Jensen Huang’s China gambit: Nvidia bets on AI growth amid geopolitical crossfire

July 10, 2025

    Get Smarter with Your Money – Sign Up for Free Financial Tips!


    Join our community of savvy savers and investors! By signing up, you'll receive weekly emails packed with personalized financial tips, budgeting hacks, and investment strategies tailored to your income level. Take control of your finances today – it’s free and only takes a minute!

    Recent News

    Tariff turbulence ahead: can airline stocks stay aloft?

    Tariff turbulence ahead: can airline stocks stay aloft?

    July 10, 2025
    Delta Airlines stock surge 13% after Q2 beat expectations, reinstates outlook

    Delta Airlines stock surge 13% after Q2 beat expectations, reinstates outlook

    July 10, 2025
    PayPal stock price analysis: beware of a major risk

    PayPal stock price analysis: beware of a major risk

    July 10, 2025
    Jensen Huang’s China gambit: Nvidia bets on AI growth amid geopolitical crossfire

    Jensen Huang’s China gambit: Nvidia bets on AI growth amid geopolitical crossfire

    July 10, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved

    No Result
    View All Result
    • About us
    • Contacts
    • Email Whitelisting
    • Investing and Stock News
    • Privacy Policy
    • Terms and Conditions
    • Thank you

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved