OCBC strategists Sim Moh Siong and Christopher Wong observe that USD/SGD has turned slightly softer, tracking Renminbi (RMB) gains as the Dollar consolidates. They see risks skewed to the downside, with support at 1.29 and 1.2840 and resistance at 1.2980. With strong correlation to DXY, they expect USD/SGD to take cues from external drivers, especially United States (US) Consumer Price Index (CPI) and Fed Chair Warsh’s testimonies.

External drivers and technical setup

"USD/SGD was a touch softer, tracking gains in RMB while USD takes a breather."

"Pair was last at 1.2915. Momentum is mild bearish while RSI fell. Risks skewed to the downside for now. Support at 1.29 (61.8% fibo retracement of Nov high to Jan low), 1.2840 (50 DMA), 50% fibo). Resistance at 1.2980 (76.4% fibo)."

"On the SG data docket this week, 2Q26 GDP is scheduled for release on 14 Jul while NODX is release on 19 Jul."

"With correlation between USDSGD and DXY still significant, the pair is likely taking cues from external drivers – watch US CPI and Fed Chair testimonies closely."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)