Key overnight events:

  • The US dollar extended its slide into a second day as traders ruled out the possibility of the Fed raising rates at its June meeting, with Fed funds futures pricing on Bloomberg showing a 0% chance of a hike in June, and an 18% probability in July. The Bloomberg Spot Dollar Index fell 0.4% as the US dollar weakened against most currencies, especially commodity ones, following the strong rally in oil prices.
  • Crude oil futures expiring in July rose 1.7% to settle at $51.23/bbl as US crude stockpiles dropped by 3.23 million barrels last week to its lowest level in two months, according to the US Energy Information Administration.
  • The S&P 500 Index advanced 0.3% to close just 0.6% below the record high set in 21st May last year; raw-material and industrial stocks led gainers.
  • The RBNZ refrained from cutting rates this morning and said it expects inflation to accelerate, resulting in the kiwi soaring by as much as 2.0% higher against the US dollar, to its strongest level this year.
  • The Bank of Korea unexpectedly cut its benchmark rate to 1.25% from 1.50% as concerns rose that the government’s push to restructure indebted companies is putting pressure on the economy.
  • Deutsche Bank warned the ECB that its loose policy stance is “threatening the European project as a wh0le” and called for the central bank to reverse course.

 

USDSGD:

  • Spot 1.3478
  • USDSGD slid as much as 0.5% to a session low of 1.3449 earlier today, as it looks likely to extend its losing streak having declined 6 out of its past 7 sessions.
  • 1.3352 is the next immediate support for the currency pair.

 

AUDUSD:

  • Spot 0.7479
  • AUDUSD rose past its 50-day moving average, climbing 0.6% to 0.7505 before paring back some of its gains.

 

USDCAD:

  • Spot 1.2680
  • Oil’s overnight rally supported most commodity currencies; the Canadian dollar strengthened a further 0.3% to 1.2655, the strongest in more than a month, against the US dollar.
  • The 100-week moving average support of 1.2529 lies a further 1.2% below. The last time the currency pair traded below it was in Jan 2013.

 

USDCNH:

  • Spot 6.5682
  • Onshore markets are closed Thursday and Friday for a local festival. Offshore yuan strengthened slightly, mostly due to a weaker US dollar.
  • May CPI rose 2.0% year-on-year, lower than the estimated 2.2%; PPI fell 2.8% year-on-year, less than the expected fall of 3.2%.

 

USDNOK:

  • Spot 8.0946
  • USDNOK slipped a further 0.4% to a session low of 8.0719, the lowest in more than a month.
  • The CEO of Norway’s $860 billion wealth fund insisted that the fund will remain committed to investing in Britain even if the country leaves the EU after this month’s referendum. At the end of 2015, the world’s biggest wealth fund had $8.3 billion invested in the UK.

 

 

© Jachin Capital Pte Ltd

UEN: 201419754M


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