USD/SGD Flying as King Dollar reigns Supreme
USD/SGD is up almost 1.5 percent over the last six trading days, as the US dollar stages an impressive comeback against its Southeast Asian counterpart.
The US to Sing dollar exchange rate is changing hands at 1.3845 on Thursday, up from 1.3664 a week ago. The dollar strength follows safe-haven buying on this week’s weaker-than-expected economic data out of China. Not to mention, some book-squaring ahead of today’s data-packed trading session.
The first item on the agenda is the minutes from July’s Federal Open Market Committee (FOMC) interest rate meeting. Here, we find out how the committee members voted in July. Following that, FOMC participant Browman will give his thoughts on the Fed’s policy path.
Later today, the Philadelphia Fed Manufacturing data and the Initial claims data for August could provide more volatility. Last but not least, Existing Home Sales for July will show how well the US housing market is holding up in the current high interest rate environment.
The Initial Jobless number is forecast to show 265,000 Americans filed for unemployment in July, up from 262,000 in June. The Philly Fed is predicted to fally by -5.0 perent in August, narrowing the -12.30 percent in July.
Singapore Dollar performance
Although the Singapore dollar has underperformed against the US dollar, its holding up well against other currencies. Recently, the Singapore dollar hit new highs versus the Indonesian Rupee, Malaysian ringgit and Thai baht. As well as rising significantly against the pound, providing a boost for the 50,000 British expats, many who send money to the UK from Singapore. Although the same can’t be said for the 26,000 Americans currently residing in Singapore, who send money to the USA.
US Dollar to Singapore Dollar Outlook
The daily chart shows USD/SGD is pulling clear from the 200-Day Moving Average (DMA) at 1.3687 (red line). As a result, the pair has scaled the 100-DMA at 1.3815 (blue) and now closing in on the 50-DMA at 1.3884 (green). Successful clearance of the 50-DMA brings July’s two-year high back into focus.
Although much depends on today’s plethora of data, technically the outlook is bullish. With that in mind, USD/SGD could soon topple the 50-DMA. However, should the data disappoint, the 100-DMA is the line which must hold. A daily close below that indicator, clears the path back down to the 200-DMA.