Covid Concerns Weigh On SGD In Asia

SGD: Singapore dollar is lower in Asia, USD/SGD last making new session highs at 1.3350. MNI sources note that markets seemed short on USD/SGD, and speculators were short covering US dollar as the rate touched highs of 1.3404 on Monday.

• The retreat for SGD is the third day of declines and is catalysed by worries over coronavirus after evidence of a breakout among guests and staff at the Mandarin Orchard hotel.
• Data released from the Singapore Business Federation shows SME's are slightly more optimistic on the outlook for the first half of 2021. The previous reading was the lowest since 2016, but sentiment has picked up, especially in the trade and commerce sector.
• USD/SGD last at 1.3350, up 24 pips, the pair dropped as low as 1.3315 early in the Asia session.
• Near term support is at the December low from Dec 17 at 1.3249, resistance is Dec 21 high at 1.3404. The pair is in overbought territory at 87.34 on the 14-day RSI.