Key overnight events:

  • The S&P 500 index rose 1.1%, on the weakest trading volume this year, to levels last seen at the start of the year, amid speculation that anxiety in global markets is abating after yesterday’s 6-7% rout in China failed to spread.
  • Front month crude oil futures rallied almost 3% to an overnight high of $33.49/bbl, as Venezuelan Oil Minister Eulogio Del Pino stated that Russia, Saudi Arabia, Qatar and Venezuela are discussing a March meeting location and are planning to meet in July as well.
  • US durable goods orders climbed 4.9% month-on-month in January from -4.6% in December, the fastest pace of increase in 10 years and beating the expected increase of 2.9%.
  • The Fed’s Bullard commented that fallen inflation expectations has got him worried; he also dismissed Brexit as a threat to the US economy.
  • Atlanta Fed President Lockhart said that rising rates will create challenges for banks and could hurt the sector; he added that officials are monitoring the situation.



  • Spot 1.3997
  • USDSGD declined to a low of 1.3988 this morning as it continues to trade within the range it’s been predominantly in over the past week.
  • A key test is whether the USDSGD can break below the 2016 low of 1.3861, which would signal a possible trend reversal.
  • Industrial production is expected to come in later at a year-on-year decline of 5.1%, following a 7.9% decline in December. This would be the 12th consecutive month of negative output.



  • Spot 0.7239
  • AUDUSD continues to test the 200-day moving average of 0.7264, reaching a high of 0.7257 this morning.
  • Australian 4Q GDP, due for release on 2nd March, is expected to come in at +0.5% quarter-on-quarter and +2.6% year-on-year.
  • RBA is seen to leave rates unchanged at its 1st March meeting next week, as signalled by all 27 economists surveyed by Bloomberg.



  • Spot 1.3535
  • Spurred on by oil’s rally, USDCAD broke below a key support of 1.3640 and the 100-day moving average of 1.3649, reaching an overnight low of 1.3517 in the process.
  • The next support below comes in the form of the 200-day moving average of 1.3269.



  • Spot 6.5375
  • USDCNH remained steady, and continues to be supported at the 6.5314 level.
  • PBOC governor Zhou stated that China will not weaken its currency to boost sagging exports; he added that PBOC is taking a currency basket for reference instead of pegging the yuan to the basket.
  • In a note to clients, Goldman Sachs analysts suggests that the recent rebound in the yuan provides an opportunity to re-establish short yuan positions against the US dollar, especially after the conclusion of G-20 meetings in Shanghai; their 12-month forecast for USDCNY is 7.000.



  • Spot 8.6024
  • After soaring to a high of 8.7608 the previous session, USDNOK pared all of its gains last night, reaching a low of 8.6010 this morning.
  • A break below the key support of 8.4465 could signal a reversal in its current long-term uptrend.


© 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