Daily FX Focus. FX Focus:AUD/USD

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1 24/5/217 Important Risk Warning The investment decision is yours but you should not invest in this product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation and investment experience. Investment involves risk. Loss may be incurred as well as profits made as a result of buying and selling investment products. 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. RMB is currently not freely convertible and subject to regulatory restrictions (which might be changed from time to time). FX Focus:AUD/USD Prior to the release of Federal Reserve Bank's meeting minutes in May, USD rebounded from 6 1/2 months low. AUDUSD once dropped to.7462 levels. The upcoming release will be Australia's April Building Approvals. Currency EUR GBP CAD CHF SGD * 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. Current Trend vs USD vs USD / / NZD vs USD.6869 /.6727 JPY Support / Resistance vs USD / 6.83 USDCNH traded within the range of The upcoming release will be China's May CPI. vs USD.9 /.944 Switzerland's April Trade Balance was lower than previous value. USDCHF once touched.9764 levels. The upcoming release will be Switzerland's May KOF Indicator. vs USD / Consolidation, indicates that the currency's movement against USD has remained sideways Up Trend, indicates that the currency has been moving higher against the USD Down Trend, indicates that the currency has been moving lower against the USD Market commentary AUD vs USD.7361 /.7248 Prior to the release of Federal Reserve Bank's meeting minutes in May, USD rebounded from 6 1/2 months low. AUDUSD once dropped to.7462 levels. The upcoming release will be Australia's April Building Approvals. RMB Germany May Business Climate Index was 114.6, higher than expected. However, as USD strengthened, EURUSD once dropped to levels. The upcoming release will be France May Consumer Confidence Index. While market awaits Britain election developments, GBPUSD once dropped to levels. The upcoming release will be UK's May House Price Index. NZD rose for 3 days in a row, NZDUSD once touched.746 levels. The upcoming release will be New Zealand's April Building Permits. vs USD / OPEC members have not struck a deal to prolong output cuts, USDCAD traded within the range of The upcoming release will be Canada's March GDP. vs USD / Japan's May Manufacturing PMI was 52, lower than previous value. USDJPY once touched levels. The upcoming release will be Japan's April CPI. Singapore's April Core CPI was 1.7%, higher than expected. However, as USD strengthened, USDSGD once touched levels. The upcoming release will be Singapore's April Industrial Production figure.

2 24/5/217 AUD RBA left the cash rate at the record low level of 1.5% in May. Prior to the release of Federal Reserve Bank's meeting minutes in May, USD rebounded from 6 1/2 months low. AUDUSD once dropped to.7462 levels. The upcoming release will be Australia's April Building Approvals. 24-May Daily change:.31%.31% (+) Australia Q4 GDP rose 2.4% YoY, higher than an increase of 1.9% in previous quarter High (~) Australia Q1 CPI rose.5% YoY, same as pervious quarter Low Support1* (+) Australia April unemployment rate arrived at 5.7%, lower than 5.9% in previous month Support2* (-) Australia April Commodity Price Index arrived at 38.6%, lower than 46.8% in previous month Resistance1* Resistance2* AUD/SGD 6-month Chart AUD/SGD 1-day moving average 2-day moving average.9 9 AUD/SGD 6-month 7-day RSI 3 EUR ECB remained April monetary policy unchanged. President Draghi implied easing monetary policy will continue. Germany May Business Climate Index was 114.6, higher than expected. However, as USD strengthened, EURUSD once dropped to levels. The upcoming release will be France May Consumer Confidence Index. 24-May Daily change: -.2% -.2% (~) Germany Q1 GDP rose.4% QoQ, same as pervious quarter High (+) Eurozone April CPI rose 1.9% YoY, higher than an increase of 1.5% in previous month Low (-) Germany April manufacturing PMI arrived at 58.2, lower than 58.3 in previous month Support1* Support2* (+) Germany April Business Climate arrived at 112.9, higher than in previous month Resistance1* Resistance2* EUR/SGD 6-month Chart EUR/SGD 1-day moving average 2-day moving average EUR/SGD 6-month 7-day RSI 3

3 24/5/217 GBP BoE remained interest rate at.25% unchanged. While market awaits Britain election developments, GBPUSD once dropped to levels. The upcoming release will be UK's May House Price Index. 24-May Daily change: -.1% -.1% (+) UK Q1 GDP advance result rose 2.1% YoY, higher than an increase of 1.9% in previous quarter's final value High (+) UK April CPI rose.5% YoY, higher than an increase of.4% in previous month Low (+) UK ILO March's 3Mths unemployment rate was at 4.6%, lower than 4.7% in previous month Support1* (-) UK April Nationwide House Prices All Houses rose 2.6% YoY, lower than an increase of 3.5% in previous month Support2* Resistance1* Resistance2* GBP/SGD 6-month Chart GBP/SGD 1-day moving average 2-day moving average GBP/SGD 6-month 7-day RSI 3 NZD RBNZ remained interest rate at 1.75% unchanged in May. NZD rose for 3 days in a row, NZDUSD once touched.746 levels. The upcoming release will be New Zealand's April Building Permits. 24-May Daily change:.53%.53% (-) New Zealand Q4 GDP rose 2.7% YoY, lower than an increase of 3.3% in previous quarter High (+) New Zealand Q1 CPI rose 2.2% YoY, higher than an increase of 1.3% in previous quarter Low (+) New Zealand Q1 unemployment rate arrived at 4.9%, lower than 5.2% in previous quarter Support1* Support2* (-) New Zealand April Commodity Price Index arrived at -.2%, lower than.4% in previous month Resistance1* Resistance2* NZD/SGD 6-month Chart NZD/SGD 1-day moving average 2-day moving average.85 9 NZD/SGD 6-month 7-day RSI 3

4 24/5/217 RMB The Premier of the State Council Li Keqiang said that China's economy will grow at medium to high speed towards medium to high end in the long run. RMB will stabilize at reasonable level. USDCNH traded within the range of The upcoming release will be China's May CPI. 24-May (+) China Q1 GDP rose 6.9% YoY, higher than an increase of 6.8% in previous quarter Daily change:.25%.25% (+) China April CPI rose 1.2% YoY, higher than an increase of.9% in previous month High (-) China April Caixin manufacturing PMI arrived at 5.3, lower than 51.2 in previous month Low (-) China April industrial production rose 6.5% YoY, lower than an increase of 7.6% in previous month Support1* Support2* Resistance1* Resistance2* RMB/SGD 6-month Chart RMB/SGD 1-day moving average 2-day moving average RMB/SGD 6-month 7-day RSI 3 CAD Bank of Canada remained April monetary policy unchanged, mentioning that there is signicant room for domestic economic growth. OPEC members have not struck a deal to prolong output cuts, USDCAD traded within the range of The upcoming release will be Canada's March GDP. ` 24-May (+) Canada February GDP rose 2.5% YoY, higher than an increase of 2.3% in previous month Daily change:.21%.21% (~) Canada April CPI rose 1.6% YoY, same as pervious month High (+) Canada April unemployment rate arrived at 6.5%, lower than 6.7% in previous month Low (+) Canada April Manufacturing PMI arrived at 55.9, higher than 55.5 in previous month Support1* Support2* Resistance1* Resistance2* CAD/SGD 6-month Chart CAD/SGD 1-day moving average 2-day moving average CAD/SGD 6-month 7-day RSI 3

5 24/5/217 JPY BoJ remained April monetary policy unchanged. Japan's May Manufacturing PMI was 52, lower than previous value. USDJPY once touched levels. The upcoming release will be Japan's April CPI. 24-May (-) Japan Q1 GDP rose 1.6% YoY, lower than an increase of 1.7% in previous quarter Daily change: -.13% -.13% (-) Japan March CPI nationwide ex fresh food rose.2% YoY, lower than an increase of.3% in previous month High (+) Japan April manufacturing PMI arrived at 52.7, higher than 52.4 in previous month Low (~) Japan March Industrial Production fell 1.9% MoM, same as pervious month Support1* Support2* Resistance1* Resistance2* JPY/SGD 6-month Chart JPY/SGD 1-day moving average 2-day moving average JPY/SGD 6-month 7-day RSI 9 3 CHF Swiss Government raised this year s inflation forecast to.5%. Switzerland's April Trade Balance was lower than previous value. USDCHF once touched.9764 levels. The upcoming release will be Switzerland's May KOF Indicator. ` 24-May (-) Switzerland Q4 GDP rose.6% YoY, lower than an increase of 1.4% in previous quarter Daily change:.1%.1% (-) Switzerland April CPI rose.4% YoY, lower than an increase of.6% in previous month High (~) Switzerland April unemployment rate arrived at 3.3%, same as pervious month Low (+) Switzerland April Foreign Currency Reserves arrived at CHF billion, higher than CHF billion in Support1* previous month Support2* Resistance1* Resistance2* CHF/SGD 6-month Chart CHF/SGD 1-day moving average 2-day moving average CHF/SGD 6-month 7-day RSI 3

6 24/5/217 SGD The Managing Director of Monetary Authority of Singapore, Ravi Menon, said that Singapore is expected to continue a modest pace of expansion, with forecasting growth of 1 % to 3 % for this year. Singapore's April Core CPI was 1.7%, higher than expected. However, as USD strengthened, USDSGD once touched levels. The upcoming release will be Singapore's April Industrial Production figure. Tehnical Analysis vs USD 24-May 1.39 (-) Singapore Q1 GDP advance result rose 2.5% YoY, lower than an increase of 2.9% in previous quarter's Daily change:.32% final value High 1.41 (~) Singapore March CPI rose.7% YoY, same as pervious month Low 1.38 Support1* 1.38 (-) Singapore Q1 unemployment rate arrived at 2.3%, higher than 2.2% in previous quarter Support2* 1.37 (-) Singapore April Non Oil Domestic Exports fell.7% YoY, lower than an increase of 16.5% in previous Resistance1* 1.41 month Resistance2* USD/SGD 6-month Chart USD/SGD 1-day moving average 2-day moving average USD/SGD 6-month 7-day RSI 9 3

7 24/5/217 Important Economic Data Release Source: Bloomberg as of May 24, 217 Reporting period Analysts Consensus Date Events Previous Actual United States 23-May-17 New Home Sales* Apr 61K 621K 569K 23-May-17 New Home Sales* Apr 61K 621K 569K 23-May-17 Richmond Fed Manufact. Index May 15% 2% 1% 24-May-17 Existing Home Sales* Apr 5.65M 5.71M - 24-May-17 MBA Mortgage Applications* Weekly -4.1% - 25-May-17 Initial Jobless Claims* Weekly 238K 232K - 25-May-17 Continuing Claims Weekly 1925K 1898K - 25-May-17 Wholesale Inventories Apr.2%.2% - 26-May-17 U. of Michigan Confidence* Jun May-17 Durable Goods Orders* Apr -1.5% 1.7% - 26-May-17 Durables Ex Transportation Apr.4%.8% - 26-May-17 GDP QoQ (Annualised)* Qtrly.9%.7% - 26-May-17 GDP Price Index Qtrly 2.3% 2.3% - 26-May-17 Core PCE QoQ Qtrly 2% 2% - 26-May-17 Personal Consumption Qtrly.4%.3% - Regional 23-May-17 Hong Kon CPI Composite Index (YoY) Apr 1.%.5% 2% 24-May-17 New Zealand Trade Balance* Apr 266.5M M - 24-May-17 New Zealand Imports Apr 4.1M M - 25-May-17 Hong Kong Export YoY % Apr 12% 16.9% - 25-May-17 Hong Kong Import YoY % Apr 13% 13% - G7 Countries 22-May-17 Japan Merchands Trade Balance Total May 52.7B B B 22-May-17 UK Rightmove House Prices (MoM) Jun 1.2% 1.2% 23-May-17 France PMI Manufacturing* May May-17 France PMI Services May May-17 France Business Confidence Indicator May May-17 Germany Germany IFO - Business Climate* May May-17 Germany GDP s.a. (QoQ)* Weekly.%.%.% 23-May-17 Germany GDP wda (YoY)* Weekly 1.7% 1.7% 1.7% 23-May-17 Germany IFO - Expectations* May May-17 Germany IFO - Current Assessment May May-17 Germany PMI Manufacturing May May-17 Germany PMI Services May May-17 Japan All Industry Activity Index (MoM) Mar -.5%.7% -.% 24-May-17 Canada Bank of Canada Rate*.5%.5% - 25-May-17 Italy Industrial Orders s.a. (MoM) Mar 5.3% - 25-May-17 Italy Industrial Order n.s.a. Mar 7.8% - 25-May-17 UK GDP (QoQ)* Weekly.3%.3% - 25-May-17 UK GDP (YoY)* Weekly 2.1% 2.1% - 26-May-17 Japan Tokyo CPI Ex-Fresh Food YoY* May May-17 Japan National CPI Ex-Fresh Food YoY* Apr May-17 Japan Natl CPI YoY Apr May-17 Japan Tokyo CPI YoY May May-17 Germany Retail Sales (MoM) Apr.1% -

8 24/5/217 Central Bank Rate Current Prior Date Current Prior Date FED Fund Jun-17 Canada (BOC) May-17 Europe (ECB).. 8-Jun-17 Japan (BOJ) Jun-17 UK (BOE) Jun-17 Malaysia Jul-17 Australia (RBA) Jun-17 Taiwan New Zealand (RBNZ) Jun-17 Indonesia Please take note that the primary sources of all the charts are from Reuters dated 24 May 217 before 9: am Terminology: Support level: Is the currency level where it tends to find support as it is going down i.e. market participants tend to see value at these levels and price is more likely to bounce up than go lower. Resistance level: Is the currency level where it tends to find resistance as it is going up i.e. market participants tend to consider this as a ceiling and prevent prices from going up further. *Please note that the indicative support and resistance level are given for general reference only. Customers should not rely on this information to buy or sell currency. Relative Strength Index (RSI): Is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. The scale is - 1 and typically overbought conditions are indicated by readings >7 and oversold conditions when <3. Moving average: Is an indicator frequently used in technical analysis showing the average value of a currency s price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance. Moving averages are used to emphasize the direction of a trend and to smooth out price and volume fluctuations, or noise, that can confuse interpretation. This information is only for a reference and does not represent recommendation from HSBC for customer to buy or sell based on the information provided.customer should not rely on the views or information expressed in this document solely to make investment decisions. HSBC shall not be held liable for damages arising out of any person s reliance upon this information. Customer should make his/her buy and sell decision based on his/her own view. Also, past performance is not indicative of future performance. Disclaimer The information shown in this document is neither a recommendation, an offer, nor a solicitation for any investment product or service. The information contained in this document has not been reviewed in the light of your personal financial circumstances. Investors should carefully consider whether any investment products or services are appropriate for them in view of their 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 or completeness, and under no circumstances will the Bank be liable for any loss caused by reliance on any opinion or statement made in this document. Except as specifically indicated, the expressions of opinion are those of the Bank only and 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. This document is distributed by HSBC Bank (Singapore) Limited ( HBSP ) pursuant to Regulation 32C of the Financial Advisers Regulations, to its customers for general reference only. HBSP accepts legal responsibility for the contents of this document, and may be contacted in respect of any matters arising from, or in connection with, this document. Please refer to HBSP s website at for its contact details. This document is prepared by The Hongkong and Shanghai Banking Corporation Limited ( HBAP ), 1 Queen s Road Central, Hong Kong. HBAP is incorporated in Hong Kong and is part of the HSBC Group.