ASX Climbs as Softer US Inflation Fuels Global Market Rally

Australian shares traded higher on Wednesday, with the ASX 200 supported by a positive lead from Wall Street after US inflation came in cooler than expected. The softer CPI reading improved investor sentiment, easing concerns over near-term Federal Reserve rate hikes while helping lift technology and growth sectors.

Gold rebounded after touching a two-week low earlier this week, supported by the weaker US dollar following the inflation data. While geopolitical tensions in the Middle East remain in focus, markets shifted their attention towards the evolving outlook for US monetary policy.

Overnight, the S&P 500 and Nasdaq closed at fresh record highs as investors welcomed the softer inflation data and looked ahead to further corporate earnings releases. Markets will now turn their attention to the US Producer Price Index (PPI) and the start of earnings season for additional clues on inflation and corporate performance.

Looking ahead, investors will closely monitor US PPI, China’s latest GDP and activity data, together with ongoing US earnings releases, as these events are expected to provide further insight into inflation trends, global growth and broader market sentiment.

This week, we take a look at three key charts: Gold, Nasdaq 100 and Bitcoin.

Gold: Rebounding after softer US inflation boosts sentiment

Gold has recovered after briefly falling to a two-week low, with softer-than-expected US inflation helping ease pressure on the precious metal. The weaker US dollar has provided additional support, while investors continue to monitor geopolitical developments and upcoming US inflation data for further direction.

The US$4,030–4,070 region remains an important support zone, while initial resistance is located around US$4,140, followed by the recent highs near US$4,180–4,200.

Nasdaq 100: Extends gains as technology stocks respond to cooler CPI

The Nasdaq 100 continued its upward momentum after softer US inflation reinforced expectations that the Federal Reserve may have greater flexibility on future interest rate decisions. Technology shares remained among the strongest performers as investor sentiment improved.

Immediate support is located around the recent breakout area, while the latest record highs remain the key resistance level to monitor should bullish momentum continue.

The 25,900–26,000 region is now acting as the first support zone, following the recent breakout. On the upside, the recent record highs around 26,300–26,400 remain the key resistance area, with a sustained move above this zone potentially signalling a continuation of the broader uptrend.

Bitcoin: Holds firm above US$64,000 as risk appetite improves

Bitcoin remained resilient above US$64,000, supported by improving global risk sentiment following the latest US inflation report. Digital assets continue to benefit from stronger investor confidence, although markets remain attentive to upcoming macroeconomic data and broader market developments.

The US$63,500–64,000 region remains an important support zone, while resistance is located near the recent highs around US$65,000, where buyers will be looking for signs of another breakout.

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