Daily FX Update, 12 September 2014

v  US initial jobless claims in the week ending September 6 increased by 11,000 v  German annual inflation rose 0.8% in August v  China showed continuing weakness in both CPI and PPI v  Philippine central bank raised its policy rate by 25 bps to 4.0% to rein in inflationary expectations v  Malaysia’s industrial production index fell more-than-expected in July

OVERNIGHT MARKET UPDATE: ·         US initial jobless claims in the week ending September 6 increased by 11,000 to a  seasonally adjusted 315,000 from the previous week’s revised total of 304,000. Analysts, on  the other hand, expected jobless claims to fall by 4,000 to 300,000. The number of people who  filed for unemployment assistance in the U.S. unexpectedly hit a ten-week high, dampening  optimism over the strength of the labor market. ·         German annual inflation rose 0.8% in August, following 0.8% growth registered the  previous month, in line with markets consensus. On a monthly basis German CPI remained flat,  after climbing 0.3%, as expected. Besides that, ECB President Mario Draghi also urged  governments to match the ECB's effort with investment and structural reforms to help the  flagging euro zone grow. ·         In the currency market, the AUD was again the focal point for markets as a new, lower  range, is being forged. AUD strength following yesterday’s labor force report was firmly and  unequivocally rebuffed as AUD once again set the pace for declines overnight. Markets are  strong buyers of USD with any currency that has been receiving 'carry' related support a firm  target. GBP found support from the business community weighing in on the independence debate  in support of the Scottish "No vote", with retailers warning of higher prices on independence.  ·         US Treasuries traded in tight ranges overnight with the long end of the curve selling off  modestly late in the session. The 2-year yield eased 1 bp to 0.56% while the 10-year yield rose 1  bp to 2.55%. ·         US equities finished the session little changed. The utilities and telecommunications  sectors outperformed, but health stocks lost ground. The S&P 500 closed 0.1% higher at 1,997,  the Nasdaq increased 0.1% to 4,592 but the Dow Jones fell 0.1% to 17,049. ·         Oil prices were higher overnight. WTI futures rose 1.7% to USD93.15 per barrel and Brent  futures rose a more modest 0.2% to USD98.20 per barrel. ·         Spot gold prices fell overnight to USD1,240.9 per ounce, its lowest level since January,   on USD strength and reportedly on muted geopolitical fears. INDICATIVE MAJOR CURRENCIES Last Close  8.00 am Snapshot        Bid                   Offer Expected Ranges for Today         Low                       High USD/MYR 3.1937 3.1880 3.2060 3.1780 3.2230 JPY/MYR (100) 2.9823 2.9760 3.0000 2.9600 3.0300 SGD/MYR 2.5271 2.5200 2.5450 2.5100 2.5600 EUR/MYR 4.1266 4.1150 4.1490 4.0900 4.1800 AUD/MYR 2.9037 2.8940 2.9240 2.8800 2.9500 GBP/MYR 5.1850 5.1740 5.2170 5.1500 5.2600 USD/JPY 107.09 106.90 107.10 106.50 107.50 EUR/USD 1.2921 1.2910 1.2940 1.2870 1.2980 AUD/USD 0.9092 0.9080 0.9120 0.9050 0.9150