Daily FX Focus

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1 Important Risk Disclosure Investment involves risk. It is important to note that the capital value of investments and the income from them may go down as well as up and may become valueless and you may not get back the amount originally invested. Past performance contained in this document is not a reliable indicator of future performance. Currency conversion risk the value of your foreign currency and RMB deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your foreign currency and RMB deposit to other currencies at an exchange rate that is less favourable than the exchange rate in which you made your original conversion to that foreign currency and RMB, you may suffer loss in principal. Currency Current Trend Australia labour market data in November was strong, supporting AUD rising for the 4th AUD vs USD.7549 /.773 consecutive day. AUDUSD once touched.7679 levels. The upcoming release will be Australia's October Building Approvals. ECB kept its interest rate unchanged in December as expected, and said the interest rate EUR vs USD / will maintain its current level for a considerable period of time. EURUSD once dropped to levels. The upcoming release will be Eurozone November CPI final value. GBP vs USD / BoE kept its interest rate unchanged in December as expected. GBPUSD traded within the range of The upcoming release will be UK's 3Q GDP final value. NZDUSD retreated from its previous gains after rising for 4 days. NZDUSD once dropped NZD vs USD.6855 /.766 to.6976 levels. The upcoming release will be New Zealand's December Business CAD Support / Resistance vs USD / Market commentary Confidence Index. The Governor of the BoC Lowe delivered a hawkish speech, supporting CAD performance. USDCAD once dropped to levels. The upcoming release will be Canada's November CPI. Japan December Nikkei manufacturing PMI was higher than previous value. USDJPY once JPY vs USD / dropped to levels. The upcoming release will be Japan's October All Industry Activity Index. * Current Trend observations pertain to historical trend technical analysis only and do not reflect any forward looking fundamental views. The signal is generated with the the 2 days moving average as the main determining factor. A secondary reference, the 5 day moving average, can be used if needed. Consolidation, indicates that the currency's movement against USD has remained sideways Up Trend, indicates that the currency has been moving higher against the base currency Down Trend, indicates that the currency has been moving lower against the base currency AUD RBA kept its interest rates unchanged at 1.5% in the December meeting, in line with expectations. Australia labour market data in November was strong, supporting AUD rising for the 4th consecutive day. AUDUSD once touched.7679 levels. The upcoming release will be Australia's October Building Approvals. 15 Dec.767 Daily change:.26% (+) Australia Q3 GDP rose 2.8% YoY, higher than an increase of 1.9% in previous quarter High.7679 (+) Australia Q3 CPI rose.6% YoY, higher than an increase of.2% in previous quarter Low.7498 (~) Australia November unemployment rate arrived at 5.4%, same as pervious month Support*.7549 ( ) Australia November Commodity Price Index arrived at 3.3%, lower than 1.9% in previous month Resistance* AUD/USD 6 month Chart AUD/USD 1 day moving average 2 day moving average.65 9 AUD/USD 6 month 7 day RSI 6 3

2 EUR ECB kept its interest rate unchanged in December as expected, and said the interest rate will maintain its current level for a considerable period of time. EURUSD once dropped to levels. The upcoming release will be Eurozone November CPI final value. 15 Dec Daily change:.53% (+) Germany Q3 GDP rose.8% QoQ, higher than an increase of.6% in previous quarter High (+) Eurozone November CPI rose 1.5% YoY, higher than an increase of 1.4% in previous month Low (+) Germany December manufacturing PMI arrived at 63.3, higher than 62.5 in previous month Support* (+) Germany November Business Climate arrived at 117.5, higher than in previous month Resistance* EUR/USD 6 month Chart EUR/USD 1 day moving average 2 day moving average EUR/USD 6 month 7 day RSI 6 3 GBP BoE kept its interest rate unchanged in December as expected. GBPUSD traded within the range of The upcoming release will be UK's 3Q GDP final value. 15 Dec Daily change:.5% (~) UK Q3 GDP preliminary value rose 1.5% YoY, same as pervious quarter's advance result High (+) UK November CPI rose.3% YoY, higher than an increase of.1% in previous month Low (~) UK ILO October's 3Mths unemployment rate was at 4.3%, same as pervious month Support* (~) UK November Nationwide House Prices All Houses rose 2.5% YoY, same as pervious month Resistance* GBP/USD 6 month Chart GBP/USD 1 day moving average 2 day moving average GBP/USD 6 month 7 day RSI 6 3

3 NZD RBNZ kept interest rates unchanged in November, but raised inflation forecasts. NZDUSD retreated from its previous gains after rising for 4 days. NZDUSD once dropped to.6976 levels. The upcoming release will be New Zealand's December Business Confidence Index. 15 Dec.698 (~) New Zealand Q2 GDP rose 2.5% YoY, same as pervious quarter Daily change:.69% (+) New Zealand Q3 CPI rose 1.9% YoY, higher than an increase of 1.7% in previous quarter High.726 (+) New Zealand Q3 unemployment rate arrived at 4.6%, lower than 4.8% in previous quarter Low.6815 Support*.6855 ( ) New Zealand November Commodity Price Index arrived at.9%, dropped more than.3% in previous Resistance*.766 month NZD/USD 6 month Chart NZD/USD 1 day moving average 2 day moving average.6 9 NZD/USD 6 month 7 day RSI 6 3 JPY Bank of Japan kept interest rates unchanged in October and lowered its inflation forecast. Japan December Nikkei manufacturing PMI was higher than previous value. USDJPY once dropped to levels. The upcoming release will be Japan's October All Industry Activity Index. 15 Dec Daily change:.2% (+) Japan Q3 GDP rose 2.1% YoY, higher than an increase of 1.6% in previous quarter High ( ) Japan October CPI nationwide ex fresh food rose.2% YoY, lower than an increase of.7% in previous month Low (+) Japan December manufacturing PMI arrived at 54.2, higher than 53.6 in previous month Support* (~) Japan October Industrial Production rose.5% MoM, same as pervious month Resistance* USD/JPY 6 month Chart USD/JPY 1 day moving average 2 day moving average USD/JPY 6 month 7 day RSI 6 3

4 CAD Bank of Canada kept interest rates unchanged at 1% in the December meeting as expected, but emphasized it would continue to cautiously adjust its monetary policy. The Governor of the BoC Lowe delivered a hawkish speech, supporting CAD performance. USDCAD once dropped to levels. The upcoming release will be Canada's November CPI. ` 15 Dec ( ) Canada September GDP rose 3.3% YoY, lower than an increase of 3.5% in previous month Daily change:.3% ( ) Canada October CPI rose 1.4% YoY, lower than an increase of 1.6% in previous month High (+) Canada November unemployment rate arrived at 5.9%, lower than 6.3% in previous month Low Support* (+) Canada November Manufacturing PMI arrived at 54.4, higher than 54.3 in previous month Resistance* USD/CAD 6 month Chart USD/CAD 1 day moving average 2 day moving average USD/CAD 6 month 7 day RSI 6 3

5 Important Economic Data Release Analysts Previous Actual 13-Dec-17 UK ILO Unemployment Rate (3mt Oct 4.2% 4.3% 4.3% 14-Dec-17 France PMI Manufacturing* Dec

6 Current Prior Date Current Prior Date FED Fund Canada (BOC) Europe (ECB).. Japan (BOJ).1.1 UK (BOE).5.5 Malaysia Australia (RBA) Taiwan New Zealand (RBNZ) Indonesia Please take note that the primary sources of all the charts are from Reuters dated 15 Dec 217 before 9: am This document is not and should not be construed as an offer or the solicitation of an offer or a recommendation for the purchase or sale of any investment or subscribe for, or to participate in, any services. The information contained in this document has not been reviewed in the light of your personal financial circumstances. You should carefully consider whether any investment views and investment products are appropriate in view of your investment experience, objectives, financial resources and relevant circumstances. Whilst every care has been taken in preparing this document, the Bank makes no guarantee, representation or warranty to its accuracy, timeliness or completeness. The Bank is not responsible for any loss, damages or other consequences of any kind that you may incur or suffer as a result of or in relation to your use of or reliance on this document. The contents of this document are subject to change without notice. Some of the information in this document is derived from third party sources as specified at the relevant places where such information is set out. The Bank believes such information to be reliable but it has not independently verified. You SHOULD NOT reproduce or further distribute the contents of this document to any person or entity, whether in whole or in part, for any purpose. Issued by HSBC Bank (China) Company Limited