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Industrial Output Shrinks

SGD

USD/SGD remains closely correlated with the BBDXY index and followed the key gauge of greenback strength on its latest leg higher. This suggests that underwhelming domestic data has played a marginal role in Singdollar's weakness versus the USD.

  • Singapore's industrial production posted an unexpected monthly contraction last month. Factory output shrank 2.3% M/M, missing expectations of a 2.3% expansion. On an annual basis, output grew just 0.6% Y/Y versus BBG median estimate of a 5.3% rate of expansion. On the bright side, prior readings were revised higher.
  • USD/SGD last changes hands at SGD1.3914, up 28 pips on the day, extending its move away from the 50-DMA (SGD1.3889).

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