SGD Shrugs Off Weak Export Data To Hit Highest Since May 2018

Weak export data from Singapore was shrugged off as USD/SGD hits the lowest levels since May 2018. USD/SGD last trades at 1.3276, down around 17 pips on the session.

• Non-oil domestic exports fell 4.9% Y/Y in November, compared to an expectation of 0.3% and a previous decline of 3.1%. Non-oil domestic exports rose 3.8% M/M against expectations of an 8.7% rise and a revised 5.4% decline in October. Electronic exports, usually a bright spot, declined 3.8% against Octobers drop of 0.5%.
• In a statement following the release government agency Enterprise Singapore said the decline mainly due to non-electronics (e.g. petrochemicals, pharmaceuticals and non-monetary gold), followed by electronics.
• Exports to China and the EU suffered the most. China declined by 18.4% in November 2020, after the previous month's 5.0% growth, led by non-monetary gold (-98.2%), petrochemicals (-25.5%) and ICs (-17.9%). NODX to the EU 27 contracted by 24.6% in November 2020, after the 0.8% increase in October 2020, mainly due to pharmaceuticals (-50.2%), food preparations (-96.3%) and electrical machinery (-53.0%).
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• There was some positive data during the session, data from the Ministry of Manpower showed the total number of people employed in Singapore continued to fall in the third quarter but at a significantly slower pace as resident employment rebounded to almost pre-pandemic levels.
• Another positive was the news earlier this week that Singapore will open a travel pathway for business travellers allowing them to visit without quarantine and accommodation in a bubble facility.