Morning wrap (19.10.2021)

• US indices finished yesterday's trading higher. S&P 500 0.34% and Nasdaq moved 0.84%. Dow Jones dropped 0.10%. Sentiment towards tech sector was supported by Apple's product event

• Bulls dominated during the Asian session as well with Nikkei and Kospi gaining 0.6%. Indices from China moved higher. S&P/ASX 200 traded slightly lower

• DAX futures point to a flat opening of the European cash session today

• According to RBA minutes, Australian central bankers expect economy to return to growth in Q4 2021 once lockdowns are lifted. The Bank will not hike rates until CPI inflation stabilizes in 2-3% range

• China asked power plants to increase stockpiles of coal

• According to Nikkei report, Japanese Prime Minister Kishida will try to persuade oil producing nations to boost output

• Japan said that North Korea fired two ballistic missiles last night

• Apple traded mostly flat in the after-hours. Company unveiled new pieces of hardware yesterday - new MacBook Pro and new AirPods headphones - that were generally well received by analysts

• Bitcoin tested $63,000 mark overnight but failed to break above

• Commodities are trading higher across the board, benefitting from US dollar weakening. Gains can be spotted on precious metals, industrial metals as well as oil

• AUD and NZD are the best performing major currencies while USD and JPY lagged the most

AUDUSD climbed back to the upper limit of the Overbalance structure, being supported by the rising commodity prices as well as weaker US dollar. Apart from a market geometry, 38.2% retracement of the downward move started in early-2021 can be found in the 0.7450 area. Pushing above this hurdle could in theory hint at a trend reversal. Source: xStation5