COVID Cases Above 100 For Eighth Day

Singapore dollar finished stronger on Tuesday but off best levels. USD/SGD dropped as low as 1.3418 early in US trade before bouncing to session highs of 1.3458, the rate then moderated into the close and last trades down 6 pips at 1.3443. The technical picture is a familiar one, support is seen at a 50.0% retracement level at 1.3425 with the 100-DMA lurking just below at 1.3418. Resistance is seen at 1.3488, a 38.2% retracement level and the 50-DMA at 1.3536.

• On the coronavirus front there were 156 new cases in the past 24 hours, above 100 for the eighth consecutive day. The health ministry has said previously that at these levels the reopening road map won't be derailed, especially having hit the 80% vaccination milestone over the weekend. The government has said that the plan now is to control infection rates rather than eliminate entirely. Still, the Straits Times fell some 1.5% yesterday, an indication that markets are sceptical over the governments resolve amid an uptick in case numbers.
• Markets look ahead to PMI data tomorrow which is expected to slow to 50.9 in August from 51.0 in July.