The index remains under pressure amid mixed corporate earnings and weak macroeconomic data. In October, business activity indicators from S&P Global failed to signal a sustained recovery: the manufacturing Purchasing Managers' Index (PMI) edged up from 49.6 to 49.7 points, while the services indicator declined from 51.9 to 47.8 points. As a result, the composite PMI fell from 51.3 to 47.7 points, returning to contraction territory. Meanwhile, major Australian-listed companies released their latest financial results at the end of last week. Mining company Newmont Corp. reported quarterly revenue of US$6.36 billion (approximately A$9.05 billion), compared with market estimates of around A$8.95 billion, while adjusted earnings per share (EPS) reached US$2.20 (approximately A$3.13), exceeding the equivalent forecast of A$2.80. These figures were published in Newmont's official third-quarter earnings report. However, digital financial services and buy-now-pay-later provider Zip Co. Ltd. reported quarterly total income of A$376.1 million, against a market estimate of A$387.0 million cited in the original analysis. The company's cash earnings before tax, depreciation and amortisation (EBTDA) reached A$65.0 million.

Amid shifting demand for financial assets, Australian government bond yields are also correcting from elevated levels. In the market snapshot, short-term 12-month securities were trading at a yield of 4.942%, compared with an earlier level of 4.969%, while benchmark 10-year bonds stood at 5.174% against 5.218%. The yield on long-term 20-year bonds declined from 5.562% to 5.531%, while the 30-year yield moved from 5.633% to 5.599%. Similar developments in the Australian equity market were discussed in our previous ASX 200 forecast.

Support and resistance levels

On the daily chart, the trading instrument remains below the support line of a long-established ascending channel with dynamic boundaries at 9400.0–8800.0.

Technical indicators are preparing to strengthen the buy signal that has prevailed recently: the fast exponential moving averages (EMAs) of the Alligator indicator remain slightly above the slow ones, while the Awesome Oscillator (AO) histogram is forming corrective bars in positive territory.

Support levels: 8720.0, 8520.0.

Resistance levels: 8870.0, 9040.0.