USD/SGD: USD, RMB forces dominate – OCBC

USD/SGD fell sharply, driven by USD decline and RMB strength. Pair was last at 1.2851.

SGD strength may continue to stay

“Daily momentum turned bearish while RSI fell into oversold conditions. We still caution for rebound risks. Support here at 1.2820, 1.2740 levels. Resistance at 1.2910, 1.2990 (21 DMA).”

“We had shared that the recent uptick in core CPI for Aug may well suggest that it is premature for MAS to ease policy stance at Oct MPC unless MAS switches from inflation fighting mode to supporting growth. As such, SGD strength may continue to stay with us for a little longer, especially if USD softness presses on.”