Image Source : Krish Capital Pty Ltd

Index Update: The S&P/ASX 200 closed higher on Thursday, adding 46.70 points or 0.53% to finish at 8,873.80, marking a new 100-day high. Over the past five sessions, the index has gained 0.48% and now sits just 0.28% below its 52-week peak. The rally was underpinned by performance in the banking sector, driven by Westpac’s third quarter results, which pushed its shares to their highest level in over a decade.

Eight of the eleven sectors ended in green, with Utilities sector recording a rise of 3.51% on the day and 1.85% for the week. The Australian dollar also touched two-week highs after robust jobs data reduced expectations of a September interest rate cut.

Macro Update: The Australian dollar climbed to around AUD 0.656 on Thursday, extending its winning streak to a third session and reaching its highest level in over two weeks, supported by labour market data. According to the Australian Bureau of Statistics, the seasonally adjusted unemployment rate fell to 4.2% in July from 4.3% in June, in line with forecasts and reversing last month’s peak at its highest level since late 2021.

The drop reflected a decrease of 10,200 unemployed people to 649,600, alongside a rise in employment of 24,500 to 14.64 million. ABS head of labour statistics, Sean Crick, noted that the unemployment rate’s 0.1 percentage point fall was underpinned by a 60,000 increase in full-time positions, partially offset by a 36,000 decline in part-time jobs. The data came shortly after the Reserve Bank of Australia cut interest rates in August, citing easing inflation and the earlier uptick in unemployment, and has since tempered expectations for another cut in September.

Top Market Movers: Leading the ASX 200 gains were Temple & Webster Group Ltd (ASX: TPW), which climbed 8.75% to close at AUD 28.35, followed by Origin Energy Ltd (ASX: ORG), advancing 6.33% to AUD 12.59. Westpac Banking Corporation (ASX: WBC) also posted strong gains, rising 6.31% to finish at AUD 36.04. On the downside, Liontown Resources Ltd (ASX: LTR) led the losses with a 9.09% drop to AUD 0.80. South32 Ltd (ASX: S32) fell 5.23% to AUD 2.90, while Neuren Pharmaceuticals Ltd (ASX: NEU) declined 5.00% to close at AUD 16.54.

Commodity Update: The U.S. dollar hovered near multi-week lows Thursday as traders increased bets on a Federal Reserve rate cut next month. Gold rose 0.18% to $3,414.50, silver gained 0.42% to $38.76, and copper inched up 0.19% to $9,827.40. Brent crude climbed 0.43% to $65.91, rebounding from the prior session’s sell-off, with the upcoming Trump–Putin meeting adding risk premiums to the market.

Our Stance: The Australian share market continued its upward trajectory on Thursday, with the S&P/ASX 200 closing at 8,873.80 — a new 100-day high — fuelled by gains in the banking sector. Notably Westpac, which soared to its highest level in over a decade following upbeat Q3 results. On the economic front, the Australian dollar climbed to a two-week high after July’s jobs data showed the unemployment rate easing to 4.2%, softening expectations of a September rate cut despite recent RBA easing. In commodities, precious and base metals saw modest gains, while oil prices rebounded amid rising geopolitical tensions. The short-term market outlook remains broadly positive, supported by labour data and stabilizing commodity prices, though further upside may be tempered by global interest rate trends and geopolitical uncertainties.

In its latest session, the S&P/ASX 200 Index gained 46.70 points to close at 8,873.80, supported by a bullish candlestick formation and robust trading volumes, both clear signals of sustained investor confidence. The price action reinforces the market’s resilience, with buying interest emerging consistently on intraday pullbacks. Technically, the index is trading comfortably above its 21-period Simple Moving Average (SMA) on the daily chart, maintaining a strong near-term bullish bias. Immediate support lies at 8,780.90; holding this level will be crucial for preserving upward momentum. On the weekly chart, the index’s position well above its 21-period SMA highlights a solid long-term bullish structure. This alignment between daily and weekly timeframes suggests that the prevailing uptrend remains intact, with higher highs and higher lows forming a consistent pattern.