In its Beige Book report released on Wednesday, the U.S. Federal Reserve indicated that the labor market was tightening but that inflationary pressures continued to remain modest.
Oil prices fell to a two-week low, down nearly 4 percent, after a build in U.S. gasoline inventories and an increase in U.S. crude production. Brent crude was lower by 3.6 percent to settle at $52.93 while U.S. crude fell 3.8 percent to settle at $50.44.
Meanwhile, the dollar rose from around three-week lows to trade at 99.804 against a basket of rivals at 6:30 am HK/SIN. The greenback also strengthened against the yen, trading slightly higher at 108.95 compared to the 108.4 handle seen yesterday.
Sterling gave up some of gains after rising to a six-and-a-half month high following the announcement of a snap election by Prime Minister Theresa May on Tuesday. Cable traded at $1.2782, off the $1.28 handle seen on Wednesday.
In corporate news, Australian miner Rio Tinto reported that iron ore production fell 3 percent on year but did not change its full-year guidance.
On the economic front, Japan is expected to report March trade data at 7:50 am HK/SIN while the Indonesian central bank announces its rate decision at 5:00 pm.
