Key overnight events:

  • The S&P 500 Index rose 1.0%, rebounding from a third weekly decline, its longest sliding streak since January. Apple, Inc. rallied 3.7% after Berkshire Hathaway disclosed it had built more than a $1 billion-stake at the end of the first quarter.
  • WTI futures expiring in June climbed 3.3% to $47.72/bbl, its highest close in more than five months, with data showing China’s refineries processed crude at record rates in April, helping ease a supply glut as the number of active rigs in the US declines. Goldman Sachs increased its price forecast of oil, saying the market had moved into a supply deficit earlier than expected.
  • The US dollar held near its strongest levels since March as the Bloomberg Spot Dollar Index was unchanged after rallying 2.6% since the start of May.
  • Richmond Fed President Jeffrey Lacker commented that the central bank should consider raising rates at its June meeting, citing strong inflation moving decidedly towards 2%, tightening labor markets and a recent dissipation of downside risks.
  • Billionaire investor George Soros cut his firm’s investment in US equities by 37% in the first quarter and bought a $264 million-stake in the world’s biggest bullion producer Barrick Gold Corp.

 

USDSGD:

  • Spot 1.3671
  • Non-oil domestic exports fell 7.9% year-on-year in April, less than the predicted 8.4%-fall and the prior month’s decline of 15.7%.
  • USDSGD declined back below the 1.3700 handle, by as much as 0.2% today to 1.3665, earlier today.

 

AUDUSD:

  • Spot 0.7347
  • In its minutes of its latest policy meeting, the RBA said that a “broad-based” weakening of inflation pressures led to an interest-rate cut even as growth outlook remained steady and board members debating holding rates steady so they can await more information.
  • AUDUSD bounced off its 200-day moving average yesterday and extended its rebound today by a further 1.0% to 0.7366, following the release of RBA’s minutes.
  • Key resistance level lies around the 0.7400 handle.

 

USDCAD:

  • Spot 1.2858
  • USDCAD fell by as much as 0.5% to 1.2845 today, as it continues to be sandwiched between the 50-day moving average resistance of 1.2949 and the support level at 1.2832. The latter is in danger of being breached as crude oil resumes its intraday ascent to fresh highs.

 

USDCNH:

  • Spot 6.5399
  • USDCNH declined 0.1% back towards its 100-day moving average of 6.5394. The yuan traded in Hong Kong’s offshore market strengthened against the US dollar for the second day after data signalled outflows moderated further last month.
  • Chinese banks sold less foreign exchange for clients in April compared with March, according to the nation’s currency regulator. Outflows slowed further, while companies and individuals have become less willing to hold foreign exchange.

 

USDNOK:

  • Spot 8.1414
  • USDNOK fell 0.3% to 8.1345 earlier today, helped on by an overnight rally in oil prices.
  • Over the medium-term, the currency pair is likely to maintain its range within the resistance around 8.2500 and the psychological support of 8.0000.

 

 

© 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