Eight ASX Stocks Poised for Growth Ahead of Anticipated Federal Reserve Rate Cuts

Markets are closely monitoring the potential for 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 stocks with substantial US exposure that appear positioned for growth once the Fed implements rate reductions.

When the Federal Reserve lowers US interest rates, the effects propagate through global markets by reducing borrowing costs, improving cash flows for companies with debt exposure, and increasing investor appetite for yield. For Australian investors, this dynamic suggests that ASX-listed companies with earnings or leverage tied to the US economy may experience strengthened profitability and renewed investor demand.

Packaging company Amcor (AMC) derives significant revenue from North America. A Fed rate cut could reduce its US-dollar denominated borrowing costs, strengthen cash flows in its core region, and potentially boost earnings and investor interest. Technically, Amcor has tested support around $13 multiple times since 2015, with analysts suggesting a possible short-term 25% trade opportunity if it maintains key support levels and advances toward $17.

Transurban Group (TCL), with major toll road operations across the US, could attract more yield-seeking investors as lower rates make infrastructure assets more desirable. Reduced long-term borrowing costs may lift profits, while the chart shows a healthy uptrend since October 2023 with resistance near $15 and longer-term potential around $16.50, making it particularly noteworthy for dividend investors.

Property heavyweight Goodman Group (GMG) benefits when falling bond yields increase the attractiveness of high-yielding shares. Despite significant gains since late 2023, analysts note pullbacks suggesting consolidation after a strong rally, support at previous highs indicating renewed buying interest, and long-term growth potential if stability continues.

US-based healthcare company ResMed (RMD) stands out as lower rates make medical equipment like sleep machines more affordable for US insurers and patients. The stock has broken all-time highs suggesting ongoing bullishness, with recent pullbacks appearing as consolidation rather than weakness, creating opportunities for both long-term investors and short-term traders.

Gaming and entertainment giant Aristocrat Leisure (ALL) typically thrives when US consumers feel more confident, as cheaper borrowing costs often translate to increased discretionary spending. This environment encourages casinos to purchase more machines and boosts gaming expenditure, with the stock trending positively toward potential upside to $79.95 all-time highs.

WiseTech Global (WTC), which expanded heavily into the US through its $4.6 billion acquisition of E2Open, could see faster adoption of its supply-chain solutions with lower rates. Technical analysis shows strong recovery after recent challenges, consolidation near momentum lines signaling readiness to move higher, and potential for significant advances toward $120–140 levels if bullish support continues.

Debt collection firm Credit Corp (CCP) demonstrates sensitivity to US financial conditions, as easier repayment environments when rates fall improve collection rates, boost profitability, and create growth opportunities for its US division. After basing near $13.50, Credit Corp shows recovery signs with analysts targeting $18.50 as the next resistance level.

Accounting software leader Xero (XRO), continuing its US expansion through major acquisitions, may benefit from Fed rate cuts through increased free cash flow for small businesses, greater adoption of subscription accounting tools, and stronger prospects for integrated payments platforms. Technically, maintaining levels above $150–160 could establish another upward movement toward all-time highs.

The analysis indicates that Federal Reserve rate cuts create ripple effects influencing both US and ASX markets, with stocks exhibiting high US exposure—spanning healthcare, logistics, gaming, and other sectors—likely to benefit most. Technical confirmation remains crucial, with stocks like ResMed and Transurban showing stronger setups while others such as Amcor require patience for basing and reversal signals to materialize.