Forex Market: USD/SGD daily trading outlook

Monday’s trade saw USD/SGD within the range of 1.2501-1.2488. The pair closed at 1.2497, adding 0.03% on a daily basis.

At 11:21 GMT today USD/SGD stood at 1.2535, up 0.31% on the day. The cross held in a range between 1.2493 and 1.2539, the highest since August 8th, having broken all three daily pivot resistance levels.

Fundamental view

United States

Activity in United States’ manufacturing sector probably continued to expand during August, with the corresponding ISM manufacturing PMI expected to come in at a reading of 56.8, according to expectations, from 57.1 in July. If confirmed, this would be the fifteenth straight month of factory growth.

The Institute of Supply Management releases its Manufacturing Report on Business each month, giving a complete overview of the country’s manufacturing sector. It is based on five main indicators with different weight: New Orders, Production, Employment, Supplier Deliveries and Inventories.

The Institute of Supply Management conducts a survey among the executives of more than 400 industrial companies, which are asked to share their opinion regarding the economic conditions in which they operate. Rising readings, and especially better-than-expected ones, are bullish for the US dollar, and vice versa.

At 13:45, Markit Economics will report separately on US factory growth during August. According to preliminary estimates, the respective Manufacturing PMI is expected to confirm the preliminary reading of 58.0, released on August 21st, marking a considerable acceleration of growth compared to July’s 55.8. If confirmed, this would be the highest pace of expansion since April 2010, rebounding from July’s three-month low.

Singapore

Singapore Institute of Purchasing & Materials Management is expected to report at 13:30 GMT that Singapore’s manufacturing sector probably grew at a slower pace in August from a month earlier.

The corresponding SIPMM Manufacturing PMI will register at 50.9, down from 51.5 in July, according to analysts’ forecasts. A reading above the threshold level of 50 signifies an expansion of the respective sector, and vice versa. Rising values, and especially better-than-expected ones, are deemed bullish for the local currency.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.2495. In case USD/SGD manages to breach the first resistance level at 1.2503, it will probably continue up to test 1.2508. In case the second key resistance is broken, the pair will probably attempt to advance to 1.2516.

If USD/SGD manages to breach the first key support at 1.2490, it will probably continue to slide and test 1.2482. With this second key support broken, movement to the downside will probably continue to 1.2477.

The mid-Pivot levels for Monday are as follows: M1 – 1.2480, M2 – 1.2486, M3 – 1.2493, M4 – 1.2499, M5 – 1.2506, M6 – 1.2512.

In weekly terms, the central pivot point is at 1.2485. The three key resistance levels are as follows: R1 – 1.2521, R2 – 1.2553, R3 – 1.2589. The three key support levels are: S1 – 1.2453, S2 – 1.2417, S3 – 1.2385.