On Thursday, April 17, 2025, Australian shares closed higher, buoyed by gains across several sectors, including energy, resources, and mining. The S&P/ASX 200 index increased by 0.78%, reflecting a positive trading environment in Sydney. Among the top performers in the index was Challenger Ltd (ASX:CGF), which saw a significant rise of 10.21%, adding 0.63 points to close at 6.80. Similarly, Ampol Ltd (ASX:ALD) gained 7.70%, or 1.59 points, ending at 22.24. Iluka Resources Ltd (ASX:ILU) also performed well, increasing by 5.60% or 0.20 points to finish at 3.77.
However, not all stocks fared well. Nanosonics (ASX:NAN) experienced a notable decline, dropping by 8.04% or 0.39 points to close at 4.46. Appen Ltd (ASX:APX) saw a decrease of 5.88% or 0.05 points, finishing at 0.80, while Zip Co Ltd (ASX:ZIP) closed down by 3.78% or 0.07 points at 1.66. Overall, the number of stocks that increased outnumbered those that declined, with 648 stocks rising compared to 433 that fell, while 428 remained unchanged.
In terms of market volatility, the S&P/ASX 200 VIX, which measures the expected volatility of options on the index, traded down by 11.69%, closing at 13.19. In commodities, gold futures for June delivery saw a slight increase of 0.04%, or 1.45, closing at $3,344.95 per ounce. WTI crude futures for May delivery rose by 0.91%, or 0.57, reaching $63.04 per barrel, while Brent crude for June delivery increased by 0.73%, or 0.48 points, closing at $66.33 per barrel.
The Australian dollar also showed strength against the US dollar during trading on the same day. The currency gained traction, trading at 0.6351, a 0.3% increase from the opening price of 0.6371. Earlier, the Australian dollar had reached a three-month high of 63.92 cents, supported by strong economic data from China, Australia's largest trading partner. Despite this, the dollar faced a slight retreat due to profit-taking and market corrections.
Data released on Thursday indicated that the Australian job market is showing signs of recovery. The Australian Bureau of Statistics reported an increase of 32,200 jobs in March, which, although lower than the market's expectation of 39,800 jobs, still reflects resilience in the labor market. The unemployment rate rose slightly to 4.1% from 4.0% in February, but it remains below the expected rate of 4.2%.
Tony Sycamore, an analyst at IG, commented on the job market's performance, stating, "The strong increase in March suggests that the Australian labor market is still more resilient than many had anticipated, including the Reserve Bank of Australia." He further noted that despite the positive job figures, the RBA is likely to cut interest rates by approximately 25 basis points in its upcoming May meeting, with a 25% chance of a more significant 50 basis point cut.
Market analysts are closely monitoring the Federal Reserve's stance on monetary policy, particularly in light of recent economic data from the United States. Retail sales data for March showed robust growth of 1.4%, up from 0.2% in February. However, core retail sales, which exclude automotive sales, fell short of expectations, registering a 0.5% increase compared to the previous month’s 0.7%. This mixed data has led to uncertainty regarding the future trajectory of the US dollar.
As the markets continue to react to these developments, the AUD/USD pair is forming a classic head and shoulders pattern, a technical indicator that often signals a continuation of bullish momentum. The Relative Strength Index (RSI) currently stands at 63, indicating positive relative strength, while the Average Directional Movement Index (ADX) reads an average of 36, suggesting a strong upward trend.
In the US, stock indices faced a downward trend, with the Dow Jones Industrial Average falling by 1.7% (approximately 699 points) to 39,669 points. The S&P 500 index dropped by 2.2% (around 121 points) to 5,275 points, while the Nasdaq index experienced a decline of 3.1% (about 516 points) to 16,307 points. This downturn was attributed to escalating trade tensions and comments from Federal Reserve Chairman Jerome Powell, who indicated that the ongoing trade war could hinder the central bank's ability to manage inflation and support economic growth.
In conclusion, the Australian market displayed resilience on April 17, 2025, with gains in various sectors and a positive outlook for the job market. However, the fluctuations in the currency values and the performance of stock indices in the US highlight the ongoing uncertainties in the global economic landscape. Investors are advised to remain cautious and vigilant as they navigate these complex market dynamics.
