Key overnight events:

  • The selloff in in Asia yesterday continued in European and US markets, as most indices ended sessions well into the red, although US indices staged a second half rally to pare losses. The S&P 500 closed down 1.2%, its lowest close in 21 months, and had traded down to as much as 3.7% lower before midday.
  • December inflation in the US came in at -0.1% month-on-month, worse than the 0.0% expected, while year-on-year inflation was +0.7%, also lower than the +0.8% forecasted.
  • Crude oil futures for delivery in February expired yesterday to settle at $26.65/bbl, and reached an intraday low of $26.19/bbl. The more actively traded March-contracted futures traded to a low of $27.56/bbl last night, but has since rebounded back above the $28.50/bbl level.

 

USDSGD:

  • Spot 1.4389
  • A triangle pattern has formed around the 1.4350 – 1.4400 region.
  • A break out of this range will be key in terms of the next medium-term direction for the USDSGD.

 

AUDUSD:

  • Spot 0.6910
  • Last Friday’s low of 0.6827 continues to remain strongly bid as the AUDUSD bounced strongly off it a couple of times over the past few days.
  • More consolidation looks set to take place around the 0.6900 handle.

 

USDCAD:

  • Spot 1.4484
  • The BoC held its benchmark interest rate unchanged at 0.5% last night, and stated that stronger US demand, a weaker Canadian dollar and last year’s rate cuts are currently leading the economy out of an oil slump.
  • USDCAD retreated from last night’s high of 1.4690, which was reached prior to the BoC’s rate announcement, to a low of 1.4450 this morning.

 

USDCNH:

  • Spot 6.6089
  • According to Bloomberg reports, the PBOC today injected 400 billion yuan via open-market operations, its biggest open-market cash injection in 3 years.
  • PBOC’s chief economist, Ma Jun, followed up by stating that the overuse of reserve ratio cuts puts too much downward pressure on short term interest rates, and is bad for stabilizing capital outflows.
  • The USDCNH, after a volatile start to the year, seems to be undergoing a period of consolidation over the past couple of days between the 6.5800 – 6.6200 range.

 

USDNOK:

  • Spot 8.8847
  • Spurred by new lows in crude oil prices overnight, USDNOK rebounded off 8.8000 levels and traded back up to as high as 8.9233, its highest in 5 days.
© 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