Asia Pacific markets are set to test key overhead resistance today. A lift in European and US shares and strong commodity prices mean investors will flirt with important highs in Hong Kong, Japan, and Australia. A weaker US dollar could contain exuberance at these significant signal points.

The Hang Seng index closed at recent highs on Friday, in line with the early 2015 post GFC high. On Friday the Nikkei index broke through a twenty year ceiling. And the Australia 200 index is within 0.5% of the top of its four month trading range. Today’s local price action could determine market direction for days and weeks to come. A co-ordinated breakthrough these importance resistance points could spur international buying of Asia Pacific share markets. Simultaneous failure, signified by negative performances today, could see sharp corrections.

US company reports and inflation data on Friday night showed reasons for investor optimism. Australia’s AGM season heats up this week and Telstra’s presentation tomorrow is crucial to the share price outlook. Jobs data on Thursday could draw local attention as inflation numbers across Asia and Europe drop.