Singapore Dollar Faces Near-Term Pressure Against US Dollar

The Singapore Dollar (SGD) has slipped against the US Dollar following a broad rebound in the Dollar after the Jackson Hole conference. According to OCBC's Sim Moh Siong and Christopher Wong, the SGD still retains relative resilience due to its S$NEER policy and firm domestic fundamentals.

However, they caution that further USD/SGD downside may be difficult to extend in the near term, with risks skewed to the upside. Key resistance levels for the SGD are at 1.2740 and 1.2780/1.2790, while support lies at 1.2680 and 1.2650.

The analysts note that a renewed move lower for the USD/SGD would likely require softer US data and a resumption of broader USD weakness, as well as the direction of the RMB remaining another key influence.