Hang Seng Successfully Opened Positive
Started trading Hong Kong shares Friday morning (8/5), the Hang Seng index successfully bounced back significantly from the previous trading session towards weakening. China’s trade balance report expected to be a signal amplifier positive stock market in early trading this morning.
China’s trade balance performance report in April is expected to show positive results from the previous release, the value of export showing an increase and imports decline. On the results of these data releases, helped strengthen the whole sector shares traded this morning.
Stocks reinforcing the index was Bank of China shares opened significantly higher at 1:20%, shares of Bank of Communications which opened up significantly by 0.80%, China Life Insurance shares opened significantly higher $ 1.07%, China Overseas Land & Investment is significantly opened higher by 2.60%, China Resources Land shares opened significantly higher at 2:14%, Galaxy Entertainment Group shares opened significantly higher at 2.43%.
And reinforced by HSBC shares opened significantly higher at 0.80%, Hang Seng stock opened significantly higher at 0.78%, stocks opened higher Lenovo significantly by 1.88%, New World Development shares opened significantly higher at 2:10%, and Sino Land stock which opened up significantly by 1.75%.
The movement of the Hang Seng Index opened higher this morning significantly by 267.55 points, or 0.98%, which became 27557.52 points from the previous closing position at 27289.97 points with reach previous highest 27604.49 points and the previous low at 27207.28 points. Likewise, the Hang Seng index futures this morning that opened up significantly by 236 points or 0.86% which is 27 344 points from its previous close at 27,108 position points to reach the previous highs at 27 573 points and the previous low at 27 135 points.
Based on the previous closing, the analyst estimated that the movement of the Hang Seng Index today will try rebounded with penetrate resistance at 27 480 points with MA5 under BB10 daily, if the movement of the index broke through the first resistance is expected to try to penetrate the next resistance at 27 735 points with MA5 middle BB10 daily.
If the movement of the index turned lower, it is estimated that the movement of the index will try to penetrate the support at 26 930 points with MA5 under BB10 daily, if the movement of the index broke through the first support is expected to try to penetrate the next support at 26 780 points with MA5 under BB10 daily.
Technically, the index on the trading session today, Friday (08/05) likely to strengthen, test positive trend. At the M15 chart bullish hammer formation to provide opportunities for the index to move upside. However, the volume tends to increase, as well as an early indication of bullish index. In addition, RSI, on the M15 charts, is oversold, signaling upside.
It is estimated, the index test the first resistance level of 27 540 and 27 487 27600. If it fails in, then the next index is expected to tend to retest the support level that is 27 440 and continued until the possibilities are in the area of 27 390.
USDJPY Slight Decline
The movement of the currency market on Friday (8/5), observed a slight strengthening of the yen against the US dollar closed lower after the previous session when the demand for the greenback rebounded due to the improvement in labor market conditions in the Americas region.
Ongoing trade in the Asian session, the USDJPY lower level of 0.02% at 119.72 where the pair is seen moving hit a daily low of 119.60 for the session and 119.78 level to the highest sessions daily.
On this morning, the yen is seen experiencing slight strengthening against the greenback after US economic reports last night has been pushed back to a natural demand for the US dollar strengthening.
Support for a strengthened US dollar in the previous session had occurred after an official report released by the US Department of Labor said that the number of jobless claims rose amid a seasonally adjusted 265,000 in the week ended May 2.
Although the look of the increase in the number of claims filed by US citizens, but the results are still below the economic forecasts which have been estimated to increase to 277,000 last week.
Meanwhile, this morning traders will be faced with a report on the Bank of Japan’s policy meeting. Along with the release of the report, the yen is potentially shifted back to the US dollar price.
Technically, today’s trading session on Friday (08/05), the dollar yen pair has an opportunity to move in a positive trend.
A stronger yen is mainly expected to immediately retest the resistance at 120.40 minimum and maximum 121.10. Meanwhile, if the Yen could not break below 119.88 and then survive another alternative scenario will be Yen likely to test support in 119.50 and 119.00 area.
Gold Prices Being Pressure, Focus on US NFP Data
Gold prices slipped for the third straight session on Friday as equities and the dollar strengthened after dipping sharply, as investors wait for non-farm payrolls report to gauge the strength of the economy and its impact on the Federal Reserve’s interest rate policy.
Spot gold prices eased 0.1% to $ 1.182 / onz on at 9:01 pm, after falling 0.6% in the previous session. Throughout this week, gold prices still rose 0.4%.
Non-farm payroll reports which are closely monitored by investors as a good reading on the health of the US economy may provide guidance on when the US central bank will begin to Raise interest rates from record lows.
Strong data could encourage the Fed to raise interest rates in the short term, a move that will hurt demand for anti-inflationary assets such as gold. The price of gold may experience a further fall of both economic reports strong US.
Analysts polled by Reuters had expected non-farm payroll will increase by 224,000 in April after rising only 126 000 in the previous month.
The possibility for a strong employment report has also been supported by data on Thursday that showed weekly jobless claims were near the lowest level in 15 years last week, this being a sign that the job market has strengthened.
Technically, gold in today’s trading session on Friday (08/05) potentially bearish, tested negative trend back, but prone to reversal. RSI indicator tends to re-test support channel and towards the oversold area, but Bollinger Band begins to widen, thus giving impetus for gold to the upside.
It is estimated that the gold price immediately prior to test support in the area of at least 1180.00 and re-test the maximum level of 1175.25. However, if the price of gold is able to break and hold above 1184.10, the estimated price of gold could potentially test the Resistance 1186.40 and 1188.80.
