Inflation signals continue to shape local market sentiment, as investors look towards next week’s Reserve Bank of Australia (RBA) interest rate decision.

It’ll be one of the last for outgoing Governor, Philip Lowe, who is being replaced by Michele Bullock in September, with investors continuing to look for clues on how the change will impact future monetary policy.

In the meantime, stronger than anticipated jobs data last week will make it harder for the RBA to keep rates on hold. Early this week the market was pricing in a 61% chance of a rise to the current 4.1% cash rate next week; and an 87% chance of an increase by September.

In the US, the Federal Reserve is expected to raise interest rates by 0.25% when it meets this week. Wall Street edged higher overnight, as earnings reporting season picks up momentum. New data shows consumer confidence increased to a two-year high in July.

Meanwhile, news that Beijing plans to stimulate China’s property and construction sectors has provided a major boost for Australian iron ore miners, with demand for the steel-making ingredient poised to increase.

BHP Group rose 3.3%, Rio Tinto 3.4% and Fortescue Metals jumped 4.6% yesterday on the back of the announcement.

The gains lifted the Metals and Mining Sector, which rose 2.9% for the session, outdoing the ASX 200’s 0.5% return for the day.

The XJO has climbed higher throughout the past week, as it sits at 7334 – comfortably higher than its 200 day weighted moving average of 7227 and its 50 day weighted moving average of 7215. The index’s 52 week high currently stands just over 7567, and it will look to break resistance barriers over the next few days.

A strong open this morning saw the XJO smash through its first and second pivot point resistance levels of 7354 and 7369 respectively, before a slight retracement. As it edges closer to its one month high of 7383, investors will be keeping a keen eye out for a breakthrough trade.

On Friday, 28th July at 12pm (AEST) we will be joined by Anthony Reilly, Managing Director and CEO of Felix Gold Ltd (ASX: FXG), the largest minerals claim owner in the Fairbanks Gold Mining District in Alaska, where historical gold production exceeds 16 Moz. The company’s recent assay results have yielded significant findings of gold and antimony, a critical mineral prized by the US Government for its extensive military applications.

During the session, Anthony will discuss the significance of recent assay results and what it means for the company. He will also discuss the 3.6Moz potential of Felix Gold’s NW Array within the Treasure Creek Project and their proximity to the neighbouring Tier 1 Fort Knox mine whose owner, Kinross, is actively engaging in M&A. Click here to book your spot or request the replay.

Past performance is not a reliable indicator of future performance.

Reach Corporate provides Corporate Advisory Services, including managing investor communications on behalf of Felix Gold Ltd and may receive fees for its services.