Will 21-DMA resistance hold? – OCBC

USDSGD was a little firmer this morning, on the back of momentum tracked by the USD rebound after US CPI, real hourly earnings surprised higher, note OCBC FX analysts Frances Cheung and Christopher Wong.

Markets await US PPI, initial jobless claims

“The pair was last at 1.3053. Daily momentum is slightly bullish, while the RSI has been steady. Consolidation likely. Resistance at 1.3065 (21 DMA), 1.3160 ​​levels (23.6% 2024 fibo retracement from high to low). Support at 1.30, 1.2953 (recent low).”

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

“Watching US PPI, initial jobless claims later this evening.”