Singapore Dollar Eases on Downbeat Data

Following a series of downbeat data, the Singapore dollar has pared some of the strength it has recently shown against the U.S. dollar...

FOREX 3

Official data showed that Singapore's Retail Sales dropped 13.3% on year in March (-16.8% expected, -8.4% in February), the biggest decline since 1998.


Source: Bloomberg


Singapore's Official Purchasing Managers Index (PMI) fell to 44.7 in April (40.0 expected) from 45.4 in March.


Meanwhile, the IHS Markit Singapore PMI plunged to 28.1 in April from 33.3 in March.


Source: Bloomberg, IHS Markit

Research firm IHS Markit commented: "The 'circuit breaker', which resulted in widespread closures of non-essential businesses as the government acted to stem the spread of the coronavirus disease 2019 (COVID-19), was the key factor causing activity to fall at a survey-record rate."

The city state has recorded over 19,000 coronavirus case with a related death toll of 18 (death rate less than 0.1%). Minister for National Development Lawrence Wong announced that key coronavirus-related restrictions will remain in force until June 1, though some lockdown measures will be easing gradually. He added: "Remember the fight is far from over." 

Following a series of downbeat data, the Singapore dollar has pared some of the strength it has recently shown against the U.S. dollar.

On an Intraday 30-Minutes Chart, USD/SGD has located a Key Support at 1.4145.

Source: GAIN Capital, TradingView

It is currently trading at levels above the ascending 20-period moving average, which stands above the 50-period one.

The Technical Configuration still favors a Bullish Bias.

Unless the key support at 1.4145 is breached, USD/SGD is expected to encounter Overhead Resistance at 1.4185 and 1.4205 (around the high of May 4).

However, a return to 1.4145 would make the pair seek support at 1.4130 on the downside.

More from Forex

Related Articles

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.