Yesterday ended at 7,393.4; during today's session ASX rallied above 7,439.7 for the first time in 8 months, gaining 41.9 points and closing at 7,435.3.
This extraordinary price action was also seen in fixed income; the iShares U.S. Treasury Bond ETF has gone up 0.9% to trade at $23.46, thereby indicating that government bond yields were downbeat across the yield curve.
On the flip side, Employment Change in Australia fell short of market expectations (22,500) with a reading of -14,600, continuing the decline from the previous figure of 58,200.
Meanwhile, new Australia Unemployment Rate data fell short of the 3.4 projected by analysts with a reading of 3.5 while failing to improve upon the previous reading from last month (3.5). Data from Australia concerning Full Time Employment was released today at 00:30 UTC. Newly published figures emphasized continued decline from last month's figure of 33,200 to 17,600 this month.
The MACD is significantly above its signal line, which suggests the market is running out of bullish momentum and could revert to a negative outlook as bears regain control. Bollinger Band® analysis indicates that current price action is approaching the upper band at 7,456, thereby suggesting that ASX is becoming overvalued. On the other hand, note that ASX broke through the 7,410.73 resistance, climbing 24.57 points above it.
Technical analysis of ASX price action suggests it is likely to undergo a short-term reversal amid broader bullish sentiment.
At the same time, Dow Jones is down to 33,300, losing 600 points, after ending the previous session around 33,900. CAC drops 1.91% today and closed at 7,083.39. DAX lost 1.8% today and closed at 15,182.
The market is looking forward to the release of new data: Australia CFTC AUD speculative net positions is scheduled for tomorrow at 20:30 UTC.
This year has been a bright one for ASX after trading as low as 6,434.7 and going on to appreciate by 6.44% year to date.