Eight ASX Stocks Poised for Growth Ahead of Expected Fed Rate Cuts

Markets are anticipating US Federal Reserve interest rate cuts, which historically trigger rapid capital movement and disproportionately benefit certain sectors and companies. Wealth Within analysts have identified eight ASX-listed stocks with substantial US exposure that could experience growth following Fed action.

When the Fed lowers rates, effects ripple through global markets as borrowing becomes cheaper, cash flows improve for companies with debt exposure, and investor appetite for yield increases. For Australian investors, this means ASX-listed companies with earnings or leverage tied to the US economy may see strengthened profitability and renewed investor demand.

Packaging giant Amcor earns significant revenue in North America. A Fed rate cut could reduce US-dollar denominated borrowing costs, strengthen cash flows in its core region, and potentially boost earnings. Technically, Amcor has tested support around $13 multiple times since 2015, with analysts suggesting a possible short-term 25% trade opportunity if it holds above key support levels.

Transurban Group, with major toll road operations across the US, could attract more yield-hungry investors as lower rates make infrastructure assets more desirable. Lower long-term borrowing costs could lift profits, with resistance around $15 and longer-term potential near $16.50.

Property heavyweight Goodman Group benefits when falling bond yields make high-yielding shares more attractive. While the stock has rallied significantly since late 2023, analysts highlight pullbacks suggesting consolidation after the strong rally with support at previous highs indicating renewed buying interest.

US-based healthcare company ResMed stands out as lower rates mean insurers and patients find it easier to afford medical equipment like sleep machines. The stock has broken all-time highs suggesting ongoing bullishness, with recent pullbacks appearing to be consolidation rather than weakness.

Gaming giant Aristocrat Leisure thrives when US consumers feel more confident, as cheaper borrowing costs often translate into more discretionary spending. Casinos purchase more machines and gaming spend tends to rise during easier credit environments, with the stock trending positively toward $79.95 all-time highs.

WiseTech Global has expanded heavily into the US, acquiring logistics software company E2Open for $4.6 billion. Lower rates could encourage faster adoption of its supply-chain solutions, with technicals showing strong recovery after recent challenges and potential for major runs toward $120-140 levels.

Debt collection firm Credit Corp is sensitive to US financial conditions, as easier repayment environments when rates fall improve collection rates, boost profitability, and create growth opportunities in its US division. After basing near $13.50, Credit Corp shows signs of recovery with analysts eyeing $18.50 as next resistance.

Accounting software leader Xero continues its push into the US with major acquisitions. Fed rate cuts mean more free cash flow for small businesses, greater adoption of subscription accounting tools, and stronger prospects for integrated payments platforms. Technically, holding above $150-160 levels could set up another leg higher toward all-time highs.

Fed rate cuts create ripple effects influencing both US and ASX markets, with stocks showing high US exposure potentially benefiting most across sectors from healthcare to logistics. Technical confirmation remains crucial, as stocks like ResMed and Transurban show stronger setups while others require patience for basing and reversal signals.