USD/SGD: The pair takes a breather – OCBC

USD/SGD continued to trade lower. The back-to-back drop in the US Dollar (USD) is providing a breather for some AXJ FX, including KRW, THB, SGD. And markets are likely to be looking forward to US NFP (Fri) andUS CPI report (next Thu), OCBC analysts Frances Cheung and Christopher Wong note.

USD/SGD drifts lower towards 1.35

“Another softer print should add to USD downside and help with recovery momentum for AXJ FX. That said, RMB, JPY moves are also eyed. Persistent drop in RMB and JPY may still dampen momentum and limit recovery in AXJ FX.”

“Pair was last at 1.3513 levels. Mild bullish momentum on daily chart is fading while RSI fell. Risks modestly skewed to the downside. Support here at 1.35 (100 DMA) and 1.3460 (50% fibo). Resistance at 1.3590, 1.3620 (76.4% fibo) and 1.3670 (2024 high). Our estimates show S$NEER was last at 1.8% above model-implied midpoint.”