USD/SGD Continues its Upward Trend
The USD/SGD pair has been steadily climbing, driven by the overall strength of the US dollar and the impact of softer Euro and RMB currencies. According to analysts Frances Cheung and Christopher Wong from OCBC, the pair is currently trading at 1.3475.
Technical Analysis and Forecast
- On the daily chart, there has been a mild bearish momentum which has now faded, with the Relative Strength Index (RSI) showing an increase.
- It is expected that the pair will consolidate with a slight bias to the upside.
- Key resistance levels are at 1.3490 and 1.3520, while support levels are at 1.3340 and 1.33.
- The 200-day Moving Average and the 23.6% Fibonacci retracement level of the September low to November high provide support at 1.3340.
- Directional cues for the pair are likely to come from movements in the USD and CNY currencies in the absence of significant data releases.
Upcoming Economic Data and Analysis
Looking ahead, the next important data releases for Singapore are the Non-Oil Domestic Exports (NODX) on December 17th and the Consumer Price Index (CPI) on December 23rd. The Singapore Dollar Nominal Effective Exchange Rate (S$NEER) is currently 0.98% above the model-implied mid-point.
Conclusion
Overall, the USD/SGD pair is showing signs of strength and is likely to continue its upward trajectory in the near term. Investors should keep a close eye on movements in the US dollar and Chinese Yuan, as they will play a crucial role in determining the direction of the pair. Additionally, upcoming economic data releases for Singapore will provide further insights into the health of the economy and may impact the currency pair.