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Unemployment Data Eyed


The greenback rose on Tuesday which pressured USD/SGD higher, the move has fairly muted compared to other pairs though, USD/SGD rising 0.04% at the close. The pair last trades at 1.3264, having bumped up against 1.3265 several times during the US session. The pair bottomed out at 1.3245 again yesterday, a 76.4% retracement level, we haven't been below here since late February and the level will be key for bears today. Resistance is seen at 1.3300, a 61.8% retracement level, above which the 100-day moving average at 1.3326 awaits.

  • Fig.1: USD/SGD

Source: MNI/Bloomberg

  • Commerzbank sees further SGD strength: "The strong recovery in the global electronics industry remains the key driving factor. In the policy meeting earlier this month, the Monetary Authority of Singapore (MAS) hinted at a possible upgrade to this year's official forecast of 4-6% currently. The leading trio of SGD, TWD, and KRW on average have gained around 1.8% vs USD since the start of April." They add they could see the strength persist "until another bout in risk aversion or spike in global bond yields which should at least par back some of the gains in the leading trio for Asian currencies".
  • Market looks ahead to the Q1 unemployment rate which is scheduled to hit today, but has no fixed time. The rate is expected to have dropped to 3.0% from 3.3% previously.

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