After making its biggest single-day drop of 118 points (1.64%) since December 2022, ASX closed at 7,091.3 today.

This extraordinary price action was also seen in fixed income; investor risk appetite was subdued as stocks were sold off in favour of perceivably safer alternatives such as government bonds. The one month Treasury rate fell from 6% to 5.31% alongside rising demand and prices. US bond yield gyrations reflect investor sentiment regarding the US economy, with lower yields suggesting investors remain confident about lending to the US government.

Retail Sales data from Australia will be released tomorrow at 01:30 UTC with analysts expecting a decline to 0%. Potentially significant price fluctuations in ASX are expected to follow.

Meanwhile, Australia Private Sector Credit improved upon its previous reading of 0.2% with a new data release of 0.6%. Australia Construction Work Done (QoQ) (Q1) came out at 1.8, while a consensus of analysts was expecting 1.5. Australia Consumer Price Index released today at 01:30 UTC with a figure of 6.8%, while the previous figure was 7%.

ASX 200 broke through the 7,167.6 support line and dropped 76.3 points below it. ASX made an initial break below its 200 day Simple Moving Average at 7,121, a possible indication of a forthcoming negative trend. A crossing of the lower Bollinger Band® at 7,132 suggests further losses may follow for ASX.

Several technical indicators are adding weight to the bearish momentum seen today and forecasting ASX to extend its recent losses.

In the meantime, negative performances are also seen in other markets, after ending today's session at 7,209.75, CAC lost 111.05 points and is trading around 7,098.7. Hang Seng is down to 18,234, losing 365.73 points, after ending the previous session around 18,600. After ending today's session at 15,900, DAX lost 235.98 points and is trading around 15,664.

With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as as things stand, upcoming Australia Retail Sales data is projected to fall short of market expectations with newly published data of 0%, following on from the preceding figure of 0.4%. New data is set to be published tomorrow at 01:30 UTC.

Furthermore, Australia Private New Capital Expenditure (QoQ) (Q1) scheduled to come out tomorrow at 01:30 UTC.

Trading mostly sideways for a month. ASX has fallen back around 4.61% from the significant high of 7,558 set 3 months ago.