A very quiet start to the trading week as hesitation after the release of the April US jobs figures on Friday night caused Wall Street to catch its breath while other markets were directionless. The USD gained against the major currency pairs while the Australian dollar remains the strongest, keeping well above the 67 cent level. Meanwhile 10 year US Treasury yields pushed up alongside shorter dated yields to get back to the 3.5% level in anticipation of the next inflation print as oil prices continued their rebound with Brent crude getting back above the $76USD per barrel. Gold consolidated its own rebound to remain just above the $2020USD per ounce level.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets held on to big initial gains as they launch into the first trading session of the week with the Shanghai Composite up more than 1.8% to 3390 points while the Hang Seng lifted some 1.2% and closed above 20000 points again. After also closing shy of the 20000 level in the previous week, the daily chart is still showing resistance building slightly above at the 20500 point level as price action wants to return to the start of year correction phase. It looks like the 19000 point level is proving an anchor point in recent months that price action continues to draw down to but support is building here for a breakout:
Japanese stock markets reopened and settled back, with the Nikkei 225 closing some 0.7% lower at 28949 points. Overall the trend remains up with some steam taken out before the holidays as price action was almost testing the low moving average area, but it looks like overall risk sentiment will not threaten trailing ATR support at 28000 points as daily momentum remains firmly on the upside:
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