Japan's first quarter GDP grew by 1.7%, beating the market’s expectation of 0.2% growth.

This has eased concerns of a possible technical recession after the country’s GDP contracted for two quarters. The Nikkei 225 index closed flat on the day.

On the other hand, Hong Kong, China and Singapore’s markets closed lower, mainly due to rising concerns of a Fed rate hike due to better-than-expected US inflation data.

Singapore company Jaya Holdings has entered into a Reverse Takeover (RTO) agreement to acquire PNG’s lending firm Heduru Moni for $232 million. Its share price jumped 14% to $0.520 after resuming trading. After a few potential delisting cases we saw early this year, Jaya Holding’s RTO deal will probably improve the market’s confidence as other emerging market players are still seeking valuable opportunities to get listed on the SGX mainboard.

FX
The dollar index rocketed to around 95.18 this morning. USD/JPY wobbled around 110.10. Immediate support and resistance levels for USD/JPY are at 109.00 and 110.00 respectively. USD/SGD advanced to 1.3810 on hawkish FOMC minutes and Singapore’s April non-oil exports shrinking by 7.9% year on year. EUR/USD retraced to the 1.1220 area. CHF/GBP slid to 0.6945 from 0.7100 a day ago. The immediate support and resistance are at 0.6940 and 0.7045 respectively.

Commodities
Crude oil advanced further on bigger-than-expected builds in US crude inventories. Canada’s plans to resume production after being delayed by wildfires remain unclear. WTI crude oil futures are down at around 47.40. An increase in US crude inventories and a surging dollar are putting downward pressure on oil.

The price of gold nosedived and is trading at $1,257 this morning. The near-term support is around $1,250 at the 50-SMA, then $1,228, which is a Fibonacci level. Silver is trading around $16.85 this morning. The near-term support and resistance levels are $16.75 and $17.66 respectively.  

USD/SGD

 
Key technical levels to watch:

  • Immediate resistance: 1.3895 (61.8% Fibonacci level)
  • 20 SMA crossed above 50 SMA, forming golden cross
  • MACD  formed bullish centreline crossover

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