Hang Seng Observed Down in Morning Session
Asian equity market movements on Thursday (5/3), Hong Kong’s main index opened lower and traded in the trade started this morning.
Ongoing trade in the Asian session, the Hang Seng index was trading 0.7% lower at 24.274.90 level, while the index of Hong Kong H-shares fell 0.3% was observed in the level of 11.699.25.
Meanwhile, in mainland China with the Shanghai Composite index has traded 0.5% lower at 3.261.99 level.
Technically, the index on the trading session today, Thursday (05/03) likely to weaken, test negative trends, the impact of Wall Street. At the M15 chart bearish engulfing formation provides opportunities for the index to move downside. However, the volume tends to rise, early indications bullish index. In addition, RSI, the M15 chart, are oversold, signaling upside.
It is estimated, the index test the first support level that is 24225 and 24260. If it fails at 24 287, then the next index is expected to tend to retest the resistance level of 24310 and continued until the possibility of being in the 24360 area.
Yen Being Under Pressure Post Comment From BOJ
The yen weakened along with the Australian dollar on Thursday’s Asian session in the comments of central bankers their salty and Australian data provide mixed outlook ahead of the European Central Bank meeting later that evening.
Bank of Japan board member Takahide Kiuchi on Thursday said that the level of inflation that is appropriate for Japan today is under the central bank’s target of 2%. He said that if the BOJ’s monetary easing add too much for pushing up inflation in the short time to the level of what the potential to encourage economic growth, it can destabilize economic activity and prices.
Kiuchi is the only member of the board that supports that make the BOJ’s inflation target of 2% to the long-term target indefinitely. He also rejected the BOJ monetary easing in October last year and continues mengusulan to slow the pace of asset purchases.
Technically, the trading session today, Thursday (05/03), the dollar yen pair a chance to move in the negative trend.
The weakening of the yen mainly expected soon reexamine the minimum support at 119.25 and 118.70 maximum. Meanwhile, if the Yen was able to break and hold above 119.74, then the other alternative scenario that Yen chance to test resistance in 119.95 and 120.25 area.
High Making Dollar, Gold Price Ends Slumped
The price of gold at the end of trading on Thursday morning still continue to decline for three consecutive sessions (5/3). Gold prices in the doldrums in the middle exchange rate of the dollar continued to rise against the euro. Federal Reserve Beige Book data show that the economic conditions in the United States is experiencing solid improvements.
Data from the labor sector in Uncle Sam also showed an increase in workers in the private sector. According to data from ADP number of workers in the private sector rose by 212K in February. While the ADP payrolls in January revised up to 250K.
The dollar rose achieve the highest position since September 2003 against rivals that are reflected in the dollar index. Government bond yields have increased this week. A stronger dollar makes gold declined.
Spot gold prices at the end of trading early this morning closed at 1200.05 dollars per troy ounce. Spot gold prices declined by 3.35 dollars, equivalent to 0.3 per cent compared to the previous closing.
Comex gold futures prices at the close of trading early this morning also appear to have decreased. Gold futures for April contract expires at the position of 1200.40 dollars per troy ounce, the dollar weakened by 3.9 or 3 percent.
Analyst estimates that LLG spot gold price movements will tend to rise limited to trading in Asia today. Price attempted to show that there was a chance to rebound amid negative sentiment that led commodity prices ..
In this har day trading price of gold could potentially test the resistance level at position 1213 dollars per troy ounce. If successfully penetrated the price will continue to rise again to the position in 1220 dollars. Meanwhile, if there is movement further weakened the price will test the support level at the position in 1195 dollars. If successfully penetrated the price will continue to rise to the position in 1190 dollars.
Technically, gold trading session today, Thursday (05/03) potential reversal, tested positive trend, but prone to taking profit. RSI indicator tends to re-test resistance and aiming the bullish channel, but Bollinger Bands that began to shrink, thus giving impetus to the gold to the downside.
It is estimated that the gold price immediately prior to test resistance in the area of at least 1208.25 and re-test the maximum level of 1212.90. However, if the price of gold was unable to break and stays below 1203.90 then estimated the price of gold could potentially test the 1201.78 and 1196.40 Support
