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FreshForex News
#92
#ASX: The 9,000 countdown has begun.
On August 7, 2025, the #ASX index surged to an all-time high of 8,856.9 points, driven by a rare mix of catalysts: soaring gold prices lifting major miners, expectations of simultaneous easing by the RBA and the Fed boosting bank and media-tech stocks, and steady demand for iron ore and base metals pushing BHP, Rio Tinto, and Fortescue higher. A global “risk-on” sentiment amid falling U.S. yields and short-covering added extra fuel.

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[Image: bf493065b067b1b72da4442443c88372.png]

Five key drivers that could push the #ASX to new heights:
  • China’s 2025 infrastructure push: Beijing is preparing an expanded lending package for transport and energy projects. This fuels iron ore and copper imports — directly boosting revenues for BHP, Rio Tinto, and Fortescue, which make up ~25% of the index.
  • Gold rally continues: The expected Fed rate cut in September pressures U.S. yields and supports gold prices. Even a move toward $3,500/oz could revive Northern Star, Evolution, and Newmont, adding dozens of points to the index.
  • Dovish RBA + weak AUD: Further rate cuts by the Reserve Bank of Australia (with AUDUSD staying below 0.64) make domestic loans cheaper while increasing export margins for resource and agri stocks.
  • Green metals boom: Rising global demand for lithium, nickel, and rare earths for batteries and renewables is driving up valuations of Pilbara Minerals, IGO, Lynas, and others — boosting the materials sector’s contribution to index growth.
  • Housing sector reversal: Lower mortgage rates and tax breaks for first-home buyers are lifting transaction volumes and online demand via REA Group. Rising home prices traditionally ignite banking and construction stocks, creating a multiplier effect on the index.

#ASX has already climbed near the top — and it has at least five major “boosters” for another rally. According to FreshForex, the index could break above 9,000 even faster if three extra catalysts come into play:
  • Superannuation fund inflows shift toward equities, adding long-term capital.
  • Buybacks and M&A by giants like BHP and Commonwealth Bank reduce float and boost EPS.
  • A fresh IPO wave of lithium and AI startups injects new tech momentum.

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FreshForex News - by FreshForex - 08-30-2023, 06:21 PM
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#ASX: The 9,000 countdown has begun. - by FreshForex - 10 hours ago

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