Key Clips

Key overnight events:

  • Crude oil futures expiring in April rose by as much as 6.6%, to a high of $33.84/bbl, before closing the session at 5.2% higher at $33.39/bbl. The rally in oil prices stemmed from bets that supply will stabilize as OPEC’s El-Badri said that Iran and Iraq are still weighing an output freeze.
  • In an oil market report, the International Energy Agency said that the current oil glut will persist into 2017, limiting any chance of rebound in the short term as the surplus takes even longer to clear than previously estimated.
  • The S&P 500 closed higher by 1.5% on the back of oil’s rally, despite equity trading volume being the lightest in 7 weeks.
  • G-20 talks are set to commence in Shanghai later this week. Means to strengthen the global financial safety net, with a focus on emerging markets and FX reserves, will be discussed, Bloomberg reports.

 

USDSGD:

  • Spot 1.4013
  • USDSGD reached a low last night of 1.3983, before recovering back above the 1.4000 this morning.
  • The 200-day moving average of 1.3955 is likely to be tested soon.
  • Consumer prices fell for a 15th straight month, the longest streak of declines since 1977. CPI fell 0.6%, in line with estimates, while core CPI rose by 0.4%, lower than the 0.5% increase forecasted.
  • Final 4Q GDP is set to come in tomorrow morning and is forecasted to expand by 1.8% year-on-year, down from the prior figure of 2.0%.

 

AUDUSD:

  • Spot 0.7231
  • AUDUSD hit a high of 0.7247 last night, its highest since 4th Jan, and is currently within 1% of its 200-day moving average, which it last traded above in Sep 2014.
  • In addition, the Feb 2016 high of 0.7243 represents a level of resistance which might prove resilient, at least for the short term.

 

USDCAD:

  • Spot 1.3717
  • USDCAD continues to be supported strongly by its year-to-date low and 100-day moving average of 1.3640 and 1.3628 respectively.
  • Finance Minister Morneau estimated fiscal deficit for 2015-2016, which ends in March, to come in at about C$2.3 billion. The government forecast for 2016 GDP was lowered to 1.4%, from 2.0% in November last year.

 

USDCNH:

  • Spot 6.5333
  • USDCNH rose to a high of 6.5379 after the PBOC lowered its daily reference rate this morning by 0.17%, the most in six weeks.
  • The currency pair is presently trading just below its 1-week high of 6.5384.
  • China will focus on boosting quality of growth in its 5-year plan and is set to continue implementing proactive fiscal and prudent monetary policies, Xinhua reported, citing official government statements.

 

USDNOK:

  • Spot 8.6088
  • Despite the rally in oil and other commodities last night, the Norwegian krone weakened against the dollar as USDNOK recovered above the 8.6000 handle; the currency pair continues to trade around its 100-day moving average of 8.6118.

 

© Jachin Capital Pte Ltd

UEN: 201419754M

The contents of this document are for information only and is taken or compiled from sources that we, Jachin Capital Pte Ltd, believe to be reliable. To the maximum extent permitted by law, we do not make any representation or warranty (express or implied) that this information is accurate, timely or complete and it should not be relied upon as such. Opinions expressed are our current opinions as at the date of this document only and are subject to change without notice. We endeavour to update on a reasonable basis the information discussed but regulatory, compliance or other reasons may prevent us from doing so. The publication and distribution of this document is not and does not imply any form of endorsement of any person, entity, service or product described or appearing here. This is not and does not constitute or form an offer to buy or sell nor the solicitation of an offer to buy or sell any security or financial instrument nor to participate in any particular trading or investment strategy. We are not soliciting any action based on this document. The information, services and products described or appearing here are intended only for Accredited Investors (as currently defined in the Securities and Futures Act) and are not intended for nor targeted at the public in any specific jurisdiction. This information does not take into account the particular investment objectives, financial situations or needs of individual investors. Investors should seek independent financial, tax or legal advice or make independent investigations as considered necessary or appropriate before making an investment decision. Investments involve risk. Any past performance, projection, forecast or simulation of results is not necessarily indicative of the future or likely performance of any investment instrument.

Essential SSL