Forex Market: AUD/SGD daily forecast

During yesterday’s trading session AUD/SGD traded within the range of 1.1737-1.1837 and closed at 1.1822.

At 8:39 GMT today AUD/SGD was losing 0.35% for the day to trade at 1.1790. The pair touched a daily low at 1.1781 at 4:50 GMT.

Fundamental view

Australia

At 23:30 GMT the Australian Industry Group (AIG) is expected to announce the results from its survey on short-term and intermediate-term conditions in countrys services sector during June. Surveyed companies answer questions associated with production, employment, prices, supplier deliveries, inventories and new orders. The seasonally adjusted Performance of Services Index (PSI) for Australia came in at a reading of 49.9 in May. Values below the key level of 50.0 are indicative of contraction in activity. An improvement in the value of this indicator would provide a certain support to Australian dollar.

Singapore

Activity in Singaporean manufacturing sector probably increased in June, with the corresponding PMI coming in at 51.0 from a reading of 50.8 in May. Values above the key level of 50.0 suggest that manufacturing 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 climbed more than anticipated, this would have a bullish effect on the national currency. The Singapore Institute of Purchasing & Materials Management (SIPMM) is expected to release the official reading at 13:30 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case AUD/SGD manages to breach the first resistance level at 1.1860, it will probably continue up to test 1.1899. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1960.

If AUD/SGD manages to breach the first key support at 1.1760, it will probably continue to slide and test 1.1699. With this second key support broken, the movement to the downside will probably continue to 1.1660.