Wall Street failed to recover its gains at the end of the session overnight with scratch sessions abiding as European stocks were closed due to the May Day holiday. Asian bourses are looking to open flat despite a solid start to the new trading week and month with local traders ready to act on the RBA’s meeting later this afternoon. The Australian dollar was slammed back to support at the 66 cent level overnight as other major currencies feel the weight of a stronger USD. 10 year US Treasury yields rose through to the 3.5% level again in anticipation of the next Fed meeting while oil prices are still depressed with Brent crude hovering below its new monthly low at the $80USD per barrel level as gold continues its failure to get back above the $2000USD per ounce level, closing at $1982 per ounce.
Looking at share markets in Asia from yesterday’s session where Chinese share markets were closed and will remain so through Wednesday, with the Hong Kong based Hang Seng Index will return to trading today. After closing shy of the 20000 level on Friday the daily chart is still showing resistance building at the 20500 point level before this recent rollover as price action returns to the start of year correction phase. While this small bounce may have legs, watch for any break below the 19000 point level as an ominous rollover sign:
Japanese stock markets had very solid sessions on the back of better consumer confidence data with the Nikkei 225 finishing nearly 1% higher at 29123 points. Futures are indicating a strong lift on the open in line despite the pullback on Wall Street overnight as Yen sold off appreciably as well, suggesting a new monthly higher to be made again. Daily momentum is quite overbought as price action previously tested support at the low moving average area with resistance now pushed aside at the 29000 point level:
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