During Friday’s trading session USD/SGD traded within the range of 1.2518-1.2570 and closed at 1.2531, gaining 0.03% for the day, while recording a 0.28% weekly loss.
Activity in United States’ sector of services probably continued to expand during April, with the corresponding non-manufacturing PMI coming in at a reading of 54.1, according to expectations, from 53.1 in March. This is a compound index, based on the values of four equally-weighted components, that comprise it. These sub-indexes reflect seasonally adjusted new orders, seasonally adjusted employment, seasonally adjusted business activity and supplier deliveries.
The business report is based on data compiled from monthly replies to questions asked of over 370 purchasing and supply executives operating in over 62 different industries, which represent nine divisions from the Standard Industrial Classification (SIC) categories. Readings above the key level of 50.0 are indicative of expanding activity. In case market expectations are exceeded, US dollar will receive a boost. The Institute for Supply Management (ISM) is to release the official reading at 14:00 GMT on Monday.
At 13:30 GMT the same day the Singapore Institute of Purchasing & Materials Management (SIPMM) is expected to publish data regarding the performance of manufacturing sector in Singapore during April. The corresponding PMI fell to a reading of 50.8 in March from 50.9 in February, as the sub-gauges of new orders, production output and inventories decreased. A reading above the key level of 50.0 suggests that manufacturing sector activity is generally expanding.
This report is closely watched by market players, because purchasing managers usually have an early access to data concerning activities in their companies. Therefore, the PMI can be used as a leading indicator, reflecting also economic performance on a national scale. In case the PMI climbs more than anticipated, this will have a bullish effect on the national currency.
According to Binary Tribune’s daily analysis, in case USD/SGD manages to breach the first resistance level at 1.2561, it will probably continue up to test 1.2592. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2613.
If USD/SGD manages to breach the first key support at 1.2511, it will probably continue to slide and test 1.2488. With this second key support broken, the movement to the downside will probably continue to 1.2457.