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Index Update: The S&P/ASX 200 slipped 6.90 points on Friday to close at 8,973.10, easing after two straight sessions of gains. The benchmark index was largely flat over the past five trading days and remains 0.90% below its 52-week peak. Sector performance was mixed, with six of eleven sectors ending lower. Information Technology led the gains, rising 3.07% on the day and extending a 0.17% advance across the week. Energy (+0.99%) and Consumer Staples (+0.42%) also added support, while A-REITs (-0.78%) and Financials (-0.57%) were notable laggards.
Macro Update: Australia’s dollar climbed to a two-week high, advancing 1.8% in August as upbeat domestic data and mounting speculation of a U.S. Federal Reserve rate cut buoyed demand. Today, the Aussie reached USD 0.6540, marking a 0.7% weekly gain and significantly outperforming the New Zealand dollar, which saw little movement over the month. Market participants are favouring the Australian currency on signs of steady momentum in the economy, highlighted by a 0.7% rise in private sector credit in July and early GDP indicators showing resilience.
Top Market Movers: NEXTDC Limited (ASX:NXT) led gains on Friday, climbing 17.44% to AUD 16.50, followed by Austal Limited (ASX:ASB) up 15.11% at AUD 7.77 and Smartgroup Corporation (ASX:SIQ) rising 12.01% to AUD 9.05. On the downside, Mesoblast Limited (ASX:MSB) slid 9.92% to AUD 2.18, PEXA Group (ASX:PXA) dropped 9.34% to AUD 15.34, and Clarity Pharmaceuticals (ASX:CU6) declined 6.29% to AUD 2.98.
Commodity Update: The dollar weakened on Friday, on track for a 2% August decline amid rising bets of a Federal Reserve rate cut and concerns over its independence, with President Trump attempting to oust Fed Governor Lisa Cook, who has filed a lawsuit. Gold slipped 0.06% to USD 3,472.20, silver fell 0.23% to USD 39.10, while copper gained 0.22% to USD 9,847.75. Brent crude dropped 0.71% to USD 67.50, with oil prices set for a weekly rise despite a U.S. demand slowdown and Russian supply uncertainty.
Our Stance: Despite a modest 6.90-point decline on Friday, the ASX 200 remains resilient—just 0.9% below its 52-week high. Tech, energy, and consumer staples sectors helped cushion the slide, while real estate and financials lagged. The Australian dollar strengthened to USD 0.6540, buoyed by upbeat domestic data including rising private sector credit and early GDP indicators. Elevated expectations of a U.S. Federal Reserve rate cut further supported demand for the currency. Overall, market sentiment reflects cautious optimism amid signs of underlying economic stability and sectoral rotation.
The S&P/ASX 200 Index ended the session slightly weaker, slipping 6.90 points and forming a bearish candlestick pattern. Despite this pullback, the broader technical structure remains constructive. On the daily chart, the index continues to trade above its 21-period Simple Moving Average (SMA), a widely tracked trend indicator that is acting as an important support level. A key support zone is identified near 8,890.50. Holding above this level could enable the index to consolidate recent gains and reinforce investor confidence in the broader uptrend. From a multi-timeframe perspective, the index also trades above its 21-period SMA on the weekly chart, further underscoring the potential for sustained bullish momentum.







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