Key Clips

Key overnight events:

  • Crude oil futures expiring in April continued its recent recovery, shrugging off an early session 2.5% loss and reaching an intraday high of $35.17/bbl, before finally closing 0.8% higher.
  • The Energy Information Administration said fuel plants processed 16 million barrels a day of crude last week, the highest level for this time of year in data going back to 1989. Gasoline inventories fell, but US crude inventories rose to its highest since 1930.
  • ADP employment for February was 214,000, higher than the expected 190,000, providing optimism for non-farm payrolls due for release tomorrow night.
  • The Fed Beige Book showed modest growth throughout most of the US, though wage growth was mixed.
  • Underpinned by energy producers and positive ADP numbers, the S&P 500 Index gained 0.4% to extend its advance for the week to 2%.

 

USDSGD:

  • Spot 1.3929
  • Singapore’s purchasing managers index for February came in at 48.5, worse than the 48.9 expected, registering its lowest reading since Oct 2012.
  • USDSGD traded below its 200-day moving average of 1.3976 for only the second time since Sep 2014. It currently looks poised to test the next support level of 1.3861, its year-to-date low.

 

AUDUSD:

  • Spot 0.7305
  • AUDUSD soared to a new 2016 high of 0.7321 this morning, as the Australian dollar continues to gain strength following yesterday’s stellar GDP numbers.
  • The currency pair’s ascent has resulted in a breakout above its 200-day moving average of 0.7252. The last time AUDUSD traded above the 200-dma was back in Sep 2014.
  • The important resistance level of 0.7385 looks set to be tested and, if broken, could signal a possible trend reversal.

 

USDCAD:

  • Spot 1.3419
  • USDCAD rose to a high of 1.3499 last night, but pared all of its gains this morning. The strong rejection at the 1.3500 handle confirms the significant breakout that occurred last week.
  • 1.3291 is the next support level below.
  • Canada’s recent GDP numbers, which were better than expected, could be enough to persuade BoC Governor Poloz to stand pat at next week’s interest decision on 9th Mar, Bloomberg reports.

 

USDCNH:

  • Spot 6.5452
  • Onshore yuan advances for the 3rd day after the PBOC raised currency fixing by the most in 2 weeks this morning. USDCNH declined as much as 0.2% as a result.
  • The Caixin China Services and Composites PMIs came in at 51.2 and 49.4 respectively, both lower than prior month’s figures of 52.4 and 50.1.
  • Reuters reported that China plans to target M2 money growth of 13% this year, a signal that further easing in monetary policy is likely.

 

USDNOK:

  • Spot 8.6650
  • USDNOK rose to 8.7211 last night, only to pare almost all of its gains soon after, as it continues to consolidate just above its 100-day moving average of 8.6507.
  • A triangular wedge pattern has formed over the past few weeks, and the future direction for the currency pair could be determined by either a break above the 8.7608 resistance or a forceful major move past below the 8.6000 handle.

 

© 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