Key overnight events:
- The S&P 500 Index retreated 0.8% to its lowest level in almost three weeks, with mining shares contributing the most to declines. LinkedIn Corp. soared 47% after Microsoft Corp said it plans to buy the networking company.
- Both the BOJ and Fed policy decisions are poised to affect trading during Thursday Asia time. While the BOJ is seen to hold policy by most economists, more than a quarter of them forecast some further easing. As for the Fed’s policy meeting, markets are pricing zero chance of a Fed hike this week, however a few banks like Morgan Stanley are expecting growth forecasts to be revised.
- The Bloomberg Spot dollar Index slipped less than 0.1% after rising more than 1.0% over the previous two sessions.
- The pound pared losses to 0.1% after falling as much as 1.0% to $1.4116, its weakest level since mid-April. While polls over the weekend indicated the race remained tight, three new surveys published Monday showed the campaign to leave the EU had opened up a five percentage-point lead over that bidding to stay. While the odds of Brexit coming to fruition are rising, the probability of staying in is still more than 65%, according to Number Cruncher Politics and Oddschecker.
- Crude oil futures expiring in July fell 0.4% to $48.88/bbl after Baker Hughes Inc. data on Friday showed that rigs targeting crude in the US rose by 3 to 328 last week, capping the longest run of weekly gains since August.
- MSCI will decide overnight whether to add mainland China stocks to its global indexes, which could spur inflows of $30 billion.
- Spot 1.3546
- USDSGD slipped as much as 0.2% earlier today to a session low of 1.3530, extending declines from the previous day after failing to break above the resistance at 1.3610, its 50-day moving average
- Spot 0.7383
- NAB Business Confidence in May fell to 3, from 5 in April.
- AUDUSD fell 0.4% to 0.7375 this morning, and looks likely to resume recent declines following yesterday’s gains, its first positive session since last Thursday.
- Foreigners buying homes in Sydney will face a new property tax from July as New South Wales becomes the second state in the country after Victoria to impose such a duty amid record home prices and soaring demand from China.
- Spot 1.2828
- USDCAD advanced 0.5% to its intraday high of 1.2839, and looks set to set to register its fourth consecutive daily gain.
- The OECD has flagged runaway real estate prices in Toronto and Vancouver as being one of the biggest risks to Canada’s economy. Finance Minister Morneau agreed that it was a major concern, though he offered few details about how to rein in those markets before a possible crash.
- Spot 6.5976
- The PBOC strengthened its reference rate by 0.02% earlier today, as USDCNH fell less than 0.1%, retreating back below the 6.6000 handle.
- Spot 8.2747
- USDNOK maintained near its closing price of 8.2773 from the previous session. The currency pair has advanced more than 2% from a month-low last week.