USDSGD was a touch firmer this morning, on follow-through momentum from the USD bounce after US CPI, real hourly earnings surprised to the upside, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Markets are waiting for US PPI, initial jobless claims

“Pair was last at 1.3053. Daily momentum is mild bullish while RSI was flat. Consolidation likely. Resistance at 1.3065 (21 DMA), 1.3160 levels (23.6% fibo retracement of 2024 high to low). Support at 1.30, 1.2953 (recent low).”

““S$NEER was last estimated at ~1.88% above our model-implied mid, with model implied spot lower bound at 1.3036. With S$NEER close to its strong end of its band, the room for further downside in USD/SGD may be limited intra-day unless broader USD takes another leg lower, then the implied lower bound of USD/SGD can be lower.”