US equities head towards seven-month high, non-farm payrolls to be watched

Asian markets were mixed on Thursday. The Nikkei index was down 2.3% as the yen strengthened.

Asian markets were mixed on Thursday. The Nikkei index was down 2.3% as the yen strengthened.

Chinese and Hong Kong markets both closed 0.4% higher. Market momentum has leaned toward more caution as uncertainty remains ahead of FOMC and Brexit decisions this month.

Singapore’s STI closed marginally higher on Thursday, led by Thai Beverage (+2.8%), Golden Agri (+2.6%) and Wilmar (+1.8%). Resources and consumer sectors have outperformed recently on rising palm oil prices and demand for defensive names.

The US market closed at a seven-month high, as better-than-expected economic data boosted confidence. Tonight’s US non-farm payrolls announcement is expected to be one of the key data releases which will determine a rate hike decision at the next FOMC meeting. However, market sentiment has improved as many investors believe that the economy is strong enough to withstand another rate hike this summer.

FX

USD/JPY has found some support around 109.00, which is also the 50% Fibonacci extension level. GBP/USD is little changed at the 1.4400 area after two days of selling. CHF/GBP retraced to the 0.7000 area after a two-day rally. USD/SGD retraced to the 1.3750 area after testing a three-month high at 1.3820. MACD has formed a negative crossover which shows slower momentum.

Commodities

The WTI Crude Oil price is traded around $49.10 this morning, slightly higher than yesterday. As expected, the OPEC meeting didn’t come out with any freeze plan. The Saudi oil minister said it is premature to resist production as the higher oil price has eased tensions among oil exporters. Gold is trading at around $1,210 this morning, with an immediate support level at $1,200. Silver is little moved at the $15.90 area. Its next support level could be found near $15.63.

Gold


 
Key technical indicators:

  • Immediate resistance level: $1,240
  • Immediate support level: $1,199


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