Australia: S&P/ASX 200 (.AXJO) – RBA is injecting extra liquidity into the financial system

Australia: S&P/ASX 200 (.AXJO) – RBA is injecting extra liquidity into the financial system

Lowe revealed that over the past few weeks, the RBA has injected “substantial extra liquidity into the financial system through our daily market operations.”

He also revealed that the RBA will conduct one-month and three-month repurchase (repo) operations each day.

In a key statistic, Lowe acknowledged that the Exchange Settlement balances have increased “from around $2.5 billion a month ago to over $20 billion today [19 March].”

The Reserve Bank is also ready to purchase Australian government bonds in the secondary market. Acknowledging that government bonds can serve as pricing benchmarks for many financial assets, the RBA is “prepared to support smooth market functioning”.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 6,097.32.

The projected upper bound is: 5,290.97.

The projected lower bound is: 4,330.25.

The projected closing price is: 4,810.61.


A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 37.1975. This is not an overbought or oversold reading. The last signal was a buy 1 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 31.71. This is not a topping or bottoming area. However, the RSI just crossed above 30 from a bottoming formation. This is a bullish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 0 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -65. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 22 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed up 117.100 at 4,852.800. Volume was 27% below average (neutral) and Bollinger Bands were 322% wider than normal.

Open     High      Low     Close     Volume___
4,735.7005,024.5004,735.7004,852.800 579,534,912
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 4,982.65 6,465.45 6,629.71
Volatility: 104 56 31
Volume: 1,670,842,368 989,712,128 711,213,184

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


S&P/ASX 200 is currently 26.8% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of .AXJO (mildly bearish). Our trend forecasting oscillators are currently bearish on .AXJO and have had this outlook for the last 20 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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