Key overnight events:

  • Overnight trading activity was light as the US and UK equity markets were closed for public holidays. The US dollar maintained near 2-month highs as the Bloomberg Spot Dollar Index ended 0.1% higher, paring gains after testing its 100-day moving average; the gauge retreated 0.2% in Asian trading earlier today.
  • WTI futures expiring in July rose 0.6% before this Thursday’s OPEC meeting although the general expectation is that nothing will happen. Elsewhere, fighting erupted near Libya’s biggest crude-shipping port, threatening supplies.
  • Spot gold rebounded 0.5% to $1,214.51/Oz in Asian trading this morning, after dropping almost 6% the previous ten sessions as the prospect of a US rate hike diminished the precious metal’s appeal.
  • The PCE deflator, the Fed’s preferred gauge of inflation, is expected to show an April uptick in its release tonight; data regarding US personal income and spending are also due.
  • Bookmaker William Hill said 85% of all Brexit bets over Monday’s public holiday were for Leave; it has shortened Leave odds to 7/2 from 4/1.
  • Japan’s industrial production in April rose 0.3% month-on-month, better than the expected fall of 1.3%. Jobless rate remained steady at 3.2%, matching expectations, while household spending fell 0.4% year-on-year, less than the 1.3%-decrease estimated.



  • Spot 1.3786
  • USDSGD continues to be capped below its 100-day moving average of 1.3826. The Singapore dollar weakened to 1.3782, or 0.2%, against the US dollar earlier today.
  • The currency pair has risen 2.5% so far this month, as the Singapore dollar looks set to head for its worst month against the US dollar since August last year.



  • Spot 0.7238
  • An RBA report showed lending to companies surged 7.4% in April from a year earlier, the biggest gain in seven years. Total lending advanced 6.7% year-on-year, more than the 6.5% expected.
  • AUDUSD surged following the release of the positive data, climbing 0.8% to a session high of 0.7239.



  • Spot 1.3026
  • USDCAD pared back some of its gains made over the past two days, dropping 0.2% back towards the 1.3000 handle earlier today.
  • Canadian GDP for Mar is due for release tonight and is expected to show a 0.1% month-on-month contraction and a 1.4% year-on-year expansion.



  • Spot 6.5889
  • The PBOC cut the yuan reference rate to its weakest level since 24th Feb; USDCNH remains little changed, falling by only as much as 0.05% earlier today.
  • Manufacturing PMI for May is due out tomorrow and is expected to come in at 50.0, a tick lower than the prior reading of 50.1.



  • Spot 8.3304
  • Unemployment rate in March remained steady from the prior month at 4.7%. However, retail sales in April failed to grow from a month earlier; a rise of 1.0% was expected.
  • USDNOK gave up its previous day’s gains, declining 0.3% to an intraday low of 8.3288 earlier today.


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UEN: 201419754M

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