Key overnight events:
- The S&P500 and Dow Jones Industrial Average rose 0.6% and 0.8% respectively, led by energy and technology stocks. Facebook soared 16% after reporting record sales, but Amazon slumped 12% in afterhours trading after it reported earnings that missed estimates.
- Crude oil futures expiring in March climbed as high as $34.82/bbl, 7.8% above the previous day’s close and the highest level since 11th Jan. The spike in oil prices was due to rumours that Russia was willing to discuss output levels with OPEC. OPEC, however, denied any talks being planned, resulting in crude oil paring gains to close at 2.9% higher.
- US durable goods orders fell 5.1% in December last year, more than the 0.7% fall expected. According to Bloomberg analysts, this raises the odds of a negative print for 4Q GDP figures due for release later tonight.
- Spot 1.4251
- USDSGD traded briefly below 1.4250 last night, touching a low of 1.4234 (lowest level since 5th Jan). The Singapore dollar is poised for its third weekly gain against the US dollar, the longest winning streak since the period ended 15th May last year.
- According to a Ministry of Manpower report yesterday, Singapore experienced its slowest job growth since 2003 last year, as a cooling economy reduced work in manufacturing and service industries.
- Spot 0.7099
- AUDUSD continued its recent recovery, climbing last night to a high of 0.7129.
- The longer-term downtrend, which began in 2013, remains intact still. A strong break above the resistance level of 0.7385 would signal a break in trend.
- Spot 1.4037
- Following the spike in crude oil, USDCAD dropped briefly below 1.4000 to a low of 1.3948.
- The 50-day moving average is presently at 1.3876.
- Spot 6.6179
- The artificial resistance level of 6.6200 continues to hold well. USDCNH’s tight range looks likely to continue as the PBOC resumes its efforts to address liquidity concerns by announcing that they will conduct open-market operations every working day during the Lunar New Year holiday. The normal frequency is twice a week.
- Spot 8.6233
- USDNOK made a new low of 8.6048 last night. It has made new intraday lows five times out of the past six sessions.
- 8.5662 is the 100-day moving average. Any break below the December low of 8.4601 would signal a break of the longer-term uptrend.