USD/SGD Technical Analysis

The US Dollar declined for the sixth consecutive day against the Singapore Dollar and is now trading at 1.3418. The PMI news for Singapore, released on Thursday, brought a slowdown in economic activity. The previous reading was 51.0, against 50.9 for the current reading. As the difference was small, the downward trend in the USDSGD was maintained and investors continued to bet on the fall of the US dollar. The PMI measures economic activity from the perspective of Purchasing Managers and below 50 indicates economic contraction. So even though the number is still above 50, the recent trend is starting to get worrisome. The most important macroeconomic indicator for today is the Non-Farm Payroll for the US, to be released later. From a technical standpoint, the USDSGD is in a support area and some buying pressure could emerge in the coming days.