Nears Key 1.33 Handle Again

Singapore dollar is stronger in Asia trade, USD/SGD down 8 pips at 1.3312, off session lows at 1.3306 with resistance seen at the 1.33 handle which formed a double bottom yesterday. The pair briefly touched 1.3342 yesterday, the highest since Dec 23.

• Earlier in the session PMI data was released. The headline index rose to 52.9 in January from 50.5 in December, hitting the highest since April 2019, in the process. "After enduring difficult business conditions throughout 2020, January data brought some positivity as domestic-led demand supported the strongest rise in output since April 2019. Policymakers will welcome the expansion, which followed the movement into phase 3 restrictions (resumption of domestic flights)," noted Shreeya Patel, Economist at IHS Markit. There were some weak points in the survey, with the rate of job losses still high.
• Separately, official manufacturing PMI was released after market yesterday. The headline index rose to 50.7 from 50.5 in December, but was below estimates of 50.9. The electronics sector index, an important aspect of the recovery, slipped to 51.0 from 51.2.