The Australia 200 has opened on a steady note this morning.The question for traders is whether Friday's disappointing US economic data will end up kindling buying support in "yield" stocks like the big 4 banks as the day unfolds. 

Australian bond yields have followed other markets, dropping to new lows after Friday's data. The 10 year yield is curently around 2.16%,down from 2.23% on Friday. This may see investor interest in yield stocks with the gap between earnings yields on stocks and bonds becoming more attractive. 

US economic data for May is so far looking like unwinding the April bounce.  The much weaker than expected employment data in May and the retreat in the ISM non-manufacturing composite index follow a significant dip in consumer confidence. This trend underscores how difficult it is to move beyond moderate levels of economic growth in the current global environment. Figures like those we saw on Friday mean the Fed will see no need to hurry in making its next rate move.

There has also been early support for resource stock this morning. Copper, gold and iron ore all had a good session on Friday and investors are looking through the negative impact of a stronger Aussie Dollar on these stocks

Harvey Norman looks like being an interesting trader stock today. It nudged into a trend line support zone this morning but has reversed in early trade. Traders will be conscious that the possibility of another RBA rate cut will is likely to support the residential building industry and Harvey Norman’s well established furniture and white goods retail business. Tax concessions for small business depreciation could also see strong year end sales of computers and mobile phones 

However, if Harvey Norman fails to reverse from these levels a declin to the 61.8% Fibonacci retracement and AB=CD support zone around $4.10-$4.15 looks possible