The Australian 200 Index Futures (ASX: S&P/ASX 200) closed a second consecutive session of losses on Tuesday after declining 0.2% during the session as the recently released minutes for the 4^th of July RBA meeting revealed that the central bank may consider further rate hikes in the near future following the surprising pause earlier this month.  

The index futures were also weighed down by losses in mining and energy stocks amid weaker iron ore and oil prices. Major decliners included BHP Group, Rio Tinto, South32, Woodside Energy, and Santos. Telstra Group, IGO Ltd, and Macquarie Group also saw declines. Ansell plummeted 14% after warning of a significant decrease in fiscal 2024 earnings due to production and staff cuts. 

Technical 

The 4H chart shows that the index futures’ break above the descending channel has found significant resistance around the 7,320 price level and closed the session confined within a daily pivot point and the support level (S3) at 7,252.5, which could act as levels of interest in the upcoming sessions. 

A sustained push below the S3 level could provide short-term trading opportunities as the price action moves towards the 50-SMA (blue line) at the 7,198.9 support level. A break below the level would confirm the failed attempt to break above the channel and could trigger a selloff to lower levels, with the 7,129.1 likely acting as a level of interest. 

However, for the upside, a sustained push above the daily pivot point could trigger a run towards higher levels, with the 7,366.9 and 7,414.5 resistance levels acting as levels of significance in the index futures’ upward trajectory. 

Summary 

The release of the RBA minutes for the 4^th of July meeting, where the central bank surprised the market by leaving the market unchanged, helped the index futures close a second consecutive session in the red. However, with the minutes providing no major surprises on the rates outlook, a recovery in the equities could be on the cards should the 7,198.9 support level remain intact. 

Sources: TradingView, Reuters, Trading Economics.