What Happened
Senior Chinese government officials held high-level meetings with the chief executives of Citigroup and Goldman Sachs in Beijing, in a notable diplomatic and financial outreach move. The meetings signal China’s intent to reassure global capital markets amid ongoing trade tensions with the US. The news lifted risk sentiment broadly, with the S&P 500 holding near 5,310 and the Nasdaq firming around 16,400 in recent sessions. Locally, the ASX 200 responded with modest gains, trading near 7,820.
Key Levels
ASX 200:
Support: 7,750 (recent swing low) and 7,680 (April consolidation base)
Resistance: 7,870 (near-term ceiling) and 7,950 (February highs)
Iron Ore (SGX futures, USD/tonne):
Support: $98.00 and $94.50
Resistance: $104.00 and $108.50
Technical Picture
The ASX 200 remains in a short-term recovery trend after bouncing off its April lows, now trading above its 20-day moving average (~7,790). RSI sits around 54 — neutral territory, suggesting room to move either way. Iron ore has stabilised after a multi-week decline but has not yet broken above key resistance at $104, keeping the medium-term trend cautious. BHP and RIO, which are heavily tied to Chinese demand, are both watching that $104 iron ore level closely.
What Traders Are Watching
The key trigger for Australian resource stocks is whether iron ore can reclaim $104/tonne — a break above this level would likely lift BHP toward $45.50 and RIO toward $120.00. On the downside, a failure to hold $98 in iron ore would pressure both miners back toward recent lows. For the broader ASX 200, a close above 7,870 would open the path toward 7,950 and signal renewed bullish momentum tied to improving China sentiment.
Bias
Cautiously Bullish — China actively engaging Wall Street chiefs is a positive signal for risk assets and Australian miners specifically. However, traders should wait for confirmation via iron ore breaking $104 before adding exposure to BHP or RIO.
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