Morning Update – 17/05/16 – by Arjun Lakhanpal

Morning all.. Wall St had a strong close as oil rallied and it was disclosed that Buffet had invested in Apple stocks. Oil continues to rally and helped Asian stocks rally again. Nikkei up 0.86% following the 1% rise on Wall St. WTI is up another 1% this morning at $48.30. The increasing intensity in supply-side disruptions in the oil market should see prices well supported in the short term traders suggest.. Expectations of very dovish RBA minutes from the May 3 meeting were dashed this morning, with pricing for a June cut dropping to 13% from 25% and AUD/USD jumping 60 pips. With the minutes revealing that the 25 bp OCR cut to 1.75% was a close call, the market has interpreted this to imply a very high bar for further easing. The market got caught short. Having held strong technical support between 0.7210 and 0.7260 (Fibo 61.8%, 200-DMA), AUD/USD may well be in for some sideways consolidation between 0.7250-0.7420. USDJPY is still in a range but higher stocks and oil taking to the higher end. 109.56 seen by some traders as a potential break but charts suggest 109.70 the real break. GBP has also had a good session in Asia as Brexit polls show a strong swing to stay in the EU. This morning we get UK CPI and PPI data and the EU Trade Balance..Good luck..