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17 Sep 2013
USD/SGD consolidates reversal – targets 1.2650 (50% Fib. lv)
FXstreet.com (Chicago) - USD/SGD extends bullish trendline on Singapore data releases and ahead of the Federal Reserve meeting in the US. The pair hovers around the 38.2% key Fibonacci level from last week’s peaks around 1.27 with a stronger USD.
NODX and NORX in Singapore – Fed in the US
According to the International Enterprise Singapore, on a year-to-year basis, the NODX (non-oil domestic exports) declined by 6.2% in August following a 1.9% decrease in the previous month due to the contraction of both electronic and non-electronic NODX. The NORX (non-oil re-exports) expanded 14.4% in the same month after a 8.1% increase the previous month. As noted by UOB economist Francis Tan, “disparities between Norx and Nodx may not mean much” but added that “if the disparity continues, it could also mean that the export of Singapore’s manufactured goods is lagging behind global demand”. As described by Reuters, Singapore’s exports tend to be unpredictable because a significant portion involves pharmaceutical and oil rigs which are highly volatile. In the US, market participants wait for the Fed’s meeting that will define whether or not there will be tapering.
USD/SGD Technical Levels
Price action reveals the consolidation of yesterday’s reversal with higher lows and upward trendline extension. The pair is capped at 1.2347 highs and flows around 1.2634 (23.6% Fibonacci retracement from September 16th lows to today’s session lows). On the downside, supports are aligned at 1.2618 (July 25th lows), 1.2592 (July 18th lows) followed by 1.2556 (August 12th lows) while the upside is marked by resistances aligned at 1.2654 (September 12th lows), 1.2684 (September 12th highs) followed by 1.27 (September 10th highs). The FXstreet.com trend index reports the pair as slightly bullish on one-hour timeframe analysis fluctuating above the EMA20.
NODX and NORX in Singapore – Fed in the US
According to the International Enterprise Singapore, on a year-to-year basis, the NODX (non-oil domestic exports) declined by 6.2% in August following a 1.9% decrease in the previous month due to the contraction of both electronic and non-electronic NODX. The NORX (non-oil re-exports) expanded 14.4% in the same month after a 8.1% increase the previous month. As noted by UOB economist Francis Tan, “disparities between Norx and Nodx may not mean much” but added that “if the disparity continues, it could also mean that the export of Singapore’s manufactured goods is lagging behind global demand”. As described by Reuters, Singapore’s exports tend to be unpredictable because a significant portion involves pharmaceutical and oil rigs which are highly volatile. In the US, market participants wait for the Fed’s meeting that will define whether or not there will be tapering.
USD/SGD Technical Levels
Price action reveals the consolidation of yesterday’s reversal with higher lows and upward trendline extension. The pair is capped at 1.2347 highs and flows around 1.2634 (23.6% Fibonacci retracement from September 16th lows to today’s session lows). On the downside, supports are aligned at 1.2618 (July 25th lows), 1.2592 (July 18th lows) followed by 1.2556 (August 12th lows) while the upside is marked by resistances aligned at 1.2654 (September 12th lows), 1.2684 (September 12th highs) followed by 1.27 (September 10th highs). The FXstreet.com trend index reports the pair as slightly bullish on one-hour timeframe analysis fluctuating above the EMA20.