Source: Krish Capital Pty Ltd

Index Update: Australian shares slipped on Wednesday, with the S&P/ASX 200 falling 59.20 points, or 0.67%, to 8,818.50, pressured by losses in mining, real estate, and retail stocks as traders booked profits ahead of an expected US Federal Reserve rate cut. Over the past five sessions, the index was largely flat but remains 2.61% below its 52-week high. Sector performance was mixed, with Utilities leading gains (+0.83%), while A-REITs (-1.58%) and Consumer Discretionary (-1.05%) lagged.

Macro Update: Australia is set to produce up to 10% of its aviation fuel needs by 2030, following a AUD 1.1 billion government investment in low-carbon liquid fuels. The initiative, welcomed by airlines, airports, and fuel suppliers, aims to cut emissions. Airbus’ Stephen Forshaw said the funding clears the industry for take-off, accelerating project approvals and investment decisions.

Top Market Movers: On Wednesday’s session, Whitehaven Coal (ASX:WHC) led the gainers, rising 5.21% to AUD 6.67, followed by Pilbara Minerals (ASX:PLS) up 4.15% at AUD 2.26, and Nuix (ASX:NXL) advancing 3.95% to AUD 2.63. Among losers, New Hope (ASX:NHC) plunged 8.30% to AUD 4.20, Deep Yellow (ASX:DYL) fell 7.93% to AUD 1.92, while Genesis Minerals (ASX:GMD) slipped 5.19% to AUD 5.30.

Commodity Update: The U.S. dollar hovered near four-year lows against the euro and a one-month low against the yen as markets awaited a widely expected 25-basis-point rate cut by the Fed. Focus shifts to Chair Powell’s comments for cues on the pace of easing, with 67.9 bps of cuts priced in for year-end. Gold slipped 0.14%, silver 1.28%, and copper 0.44%. Brent crude eased 0.10% after recent gains on Russian supply concerns.

Our Stance: Australian shares eased, with the ASX 200 slipping 0.67% to 8,818.50, as profit-taking hit miners, real estate, and retail ahead of the Fed’s rate call. Utilities offered resilience, while A-REITs dragged. The government’s AUD 1.1bn clean jet fuel initiative provides a structural long-term tailwind, signalling policy alignment with decarbonisation trends. Near-term caution is essential amid global monetary shifts, yet Australia’s pivot into cleaner energy and selective resource names offers a selective opportunity for individuals positioning beyond short-term volatility.

The S&P/ASX 200 Index came under pressure, sliding 59.20 points and forming a bearish candlestick on rising volume a sign of strengthening short-term selling momentum and the potential for further downside. The index is now trading below its 21-period SMA, which has turned into a key resistance level. On the daily chart, support around 8,720 remains critical; holding above this zone could provide a base for a potential rebound, while a decisive breakdown would expose the index to deeper near-term losses. From a broader perspective, the weekly chart remains constructive, with the index continuing to trade above its 50-period SMA, highlighting the resilience of the long-term uptrend. Although near-term volatility is expected, the longer-term outlook remains bullish as long as key support levels are maintained.