DOLLAR-SING: USDSGD continues to edge lower driven...>

DOLLAR-SING: USDSGD continues to edge lower driven in large part by the ongoing

strength in the Chinese yuan, last trading at 1.3075, and the SGD's bull market

looks like it could have further legs. As long as the resistance levels of

1.3100 and 1.3200 hold, the focus will be on 1.3000 which marks the January low.

A break of this level would set up a move to 1.2800, where the multi-year upward

trend-line from 2011 comes in to play.

- The MAS, which meets twice a year to announce currency policy changes,

convenes in April. Economists are divided on what the MAS' course of action will

be. An increase in the appreciatory slope of the SGD's nominal effective

exchange rate basket looks likely, which would provide fundamental support for

an ongoing rally.

- USDSGD, like most currency pairs, has shown little susceptibility to the

ongoing rise in US interest rates, and given its partial peg to the USD should

outperform in the event of a dollar comeback.