Market News & Analysis
Singapore Dollar Eases on Downbeat Data
Ming Lam May 6, 2020 4:43 PM
Official data showed that Singapore's Retail Sales dropped 13.3% on year in March (-16.8% expected, -8.4% in February), the biggest decline since 1998.
Singapore's Official Purchasing Managers Index (PMI) fell to 44.7 in April (40.0 expected) from 45.4 in March.
Meanwhile, the IHS Markit Singapore PMI plunged to 28.1 in April from 33.3 in March.
Source: Bloomberg, IHS Markit
Research firm IHS Markit commented: "The 'circuit breaker', which resulted in widespread closures of non-essential businesses as the government acted to stem the spread of the coronavirus disease 2019 (COVID-19), was the key factor causing activity to fall at a survey-record rate."
The city state has recorded over 19,000 coronavirus case with a related death toll of 18 (death rate less than 0.1%). Minister for National Development Lawrence Wong announced that key coronavirus-related restrictions will remain in force until June 1, though some lockdown measures will be easing gradually. He added: "Remember the fight is far from over."
Following a series of downbeat data, the Singapore dollar has pared some of the strength it has recently shown against the U.S. dollar.
On an Intraday 30-Minutes Chart, USD/SGD has located a Key Support at 1.4145.
Source: GAIN Capital, TradingView
It is currently trading at levels above the ascending 20-period moving average, which stands above the 50-period one.
The Technical Configuration still favors a Bullish Bias.
Unless the key support at 1.4145 is breached, USD/SGD is expected to encounter Overhead Resistance at 1.4185 and 1.4205 (around the high of May 4).
However, a return to 1.4145 would make the pair seek support at 1.4130 on the downside.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.