Australian (ASX) Stock Market Forum

Buying the Dip on ASX

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ASX200 is around session highs at midday, putting on track to break resistance around the key 6600 level. All trading carries risk, but it will be interesting to see what the reaction to the RBA decision is in a few hours, and whether it can hold this move into the close.
 
longer term, some say this cycle of short-term fixes will only keep the wolf from the door for a while. Central banks kept rates way too low, for way too long and now they threaten to take rates too high for too long. And we know what happens; things break (UK Bonds). So will an action, or even a signal, that the Fed slows its rate of lifting be enough to be a circuit breaker? Another possible one is a global coordinated effort to sell U.S $Dollars. But that will take another Plaza Accord. On 15 Nov, G20 meet in Bali. Apart from the odious Putin being in the room, maybe this could be a way forward.
 
Dona Ferentes said:
longer term, some say this cycle of short-term fixes will only keep the wolf from the door for a while.
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This is a great point. Looking at a variety of major global indices trading at or around their lows for 2022, selling pressure on markets has reached an extreme level, and technically, that leaves scope for some sort of bounce.

However, with the bearish macroeconomic backdrop persisting, upside potential is limited and the time frame of any potential rebound is in question.
 
aus_trader said:
Does anyone know what caused the late rally/spike in the All Ord's today ?

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RBA interest rate rise at 0.25% ?
I think the punters thought it was going to be 0.5, but if you read between Lowes lines, he hinted it was going to be a quarter.

Cash Rate Target​

Monetary policy decisions involve setting a target for the cash rate. A media release is issued at 2.30 pm after each Reserve Bank Board meeting, with any change in the cash rate target taking effect the following day.

www.rba.gov.au

Cash Rate Target

Interest Rate Decisions about the cash rate
www.rba.gov.au www.rba.gov.au
 
frugal.rock said:
RBA interest rate rise at 0.25% ?
I think the punters thought it was going to be 0.5, but if you read between Lowes lines, he hinted it was going to be a quarter.
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OK, I didn't read between the lines mate. Thanks for the explanation.

I thought the result was as market expected, so didn't really see the RBA decision causing such a spike.
 
aus_trader said:
OK, I didn't read between the lines mate. Thanks for the explanation.

I thought the result was as market expected, so didn't really see the RBA decision causing such a spike.
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yeah, but it was such a buoyant day, why not add a bit extra, when things align. . Only jarring reality is being out of kilter with other Central Banks (but even that can help the market if AUD weakens)
 
Dona Ferentes said:
yeah, but it was such a buoyant day, why not add a bit extra, when things align. . Only jarring reality is being out of kiler with other Central Banks (but even that can help the market if AUD weakens)
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My gut feeling is there won't be 0.5 or 0.75 hikes for the rest of the year and into next year. Unless something macro escalates to cause another leg in pushing inflation higher.

Bank of England is giving us a clue as to interest rate hikes slowing.
 
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