USD/SGD: Watching US data – OCBC

USD/SGD fell further, tracking the broader softness in USD, OCBC Frances Cheung and Christopher Wong note.

Consolidation likely near recent lows ahead of US jobs data

“Pair breached 1.30 briefly to trade a low of 1.2992 at one point. Pair was last below 1.30 levels. Daily momentum is mild bullish while RSI fell. Consolidation likely near recent lows as markets await US jobs data. Support at 1.2960. Resistance at 1.3090 (21 DMA), 1.3160 levels (23.6% fibo retracement of 2024 high to low).”

“S$NEER was last estimated at ~1.92% above our model-implied mid, with model implied spot lower bound at 1.2990. With S$NEER close to its lower bound, the room for further downside in USD/SGD may be limited intra-day. However, if broader USD takes another leg lower, then the implied lower bound of USD/SGD can be lower.”