Fed and commodity prices taking market's attention in a big way - Westpac

The US Federal Reserve and commodity prices are taking the centre stage at present, according to analysts at Westpac.

Key Quotes

"The Fed is widely expected to deliver a follow–up interest rate hike in June, a further step in the process of gradual policy normalisation. Commodity prices have slipped."

"The spot price for iron ore has declined from US$80/t at the end of March to US$60/t, with further downside in our view.” 

“Together these developments, which are in line with our expectations, have seen the Australian dollar settle around US74¢ after trading in a relatively tight range of US75¢ to 77¢ over the opening months of this year."

"We continue to expect the currency to trend lower in 2018, heading to around US65¢ by years end."