Forex Market: AUD/SGD trading forecast for Monday

Friday’s trade saw AUD/SGD within the range of 1.1397-1.1505. The pair closed at 1.1418, losing 0.71% on a daily basis and 2.88% for the whole week.

Fundamental view

Australia

At 1:30 GMT on Monday the Australian Bureau of Statistics is scheduled to report on new motor vehicle sales in the country for September. New vehicle registrations dropped 1.3% in August compared to July. A record high number of new vehicle registrations in Australia was recorded in September 2012, or 98 241. New vehicle sales, as an indicator, reflect how strong consumer confidence is. In case consumers are willing to make large-ticket purchases, such as new automobiles, this suggests they have greater confidence regarding their financial prospects. However, as new car sales account for a small portion of Australian Gross Domestic Product, a potential decrease would have a limited bearish impact on the national currency.

Singapore

At 5:00 GMT Statistics Singapore is expected to report on retail sales in the country for July. Seasonally adjusted sales dropped 1.1% in June compared to the preceding month, following a 5.2% gain in May, which has been the fastest monthly pace since April 2013. Sales, excluding motor vehicles, decreased 1.2% in June. In annual terms, the retail sales index rose 0.4% in June, following four consecutive months of drops. Annualized retail sales, excluding motor vehicles, fell 2.1% in June. Total value of sales was 3.2 billion USD in June, or an increase from 3.1 billion USD in June 2013. The report on retail sales provides key information regarding the consumer spending trend, while the latter is a key driving force behind economic growth. In case retail sales index dropped in July, this would have a bearish effect on the local currency.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.1440. In case AUD/SGD manages to breach the first resistance level at 1.1484, it will probably continue up to test 1.1548. In case the second key resistance is broken, the pair will probably attempt to advance to 1.1591.

If AUD/SGD manages to breach the first key support at 1.1375, it will probably continue to slide and test 1.1332. With this second key support broken, the movement to the downside will probably continue to 1.1267.

The mid-Pivot levels for Monday are as follows: M1 – 1.1300, M2 – 1.1354, M3 – 1.1408, M4 – 1.1462, M5 – 1.1516, M6 – 1.1570.

In weekly terms, the central pivot point is at 1.1522. The three key resistance levels are as follows: R1 – 1.1648, R2 – 1.1877, R3 – 1.2003. The three key support levels are: S1 – 1.1293, S2 – 1.1167, S3 – 1.0938.