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US dollar edges lower against Singapore dollar ahead of economic data release 

May 28, 2024

Key points: 

  • USD/SGD slips 0.1% to 1.3472 during the Asian session. 
  • Market focus on the Conference Board’s consumer confidence data for May. 
  • Technical support at 1.3400 and resistance at 1.3500. 

During the Asian trading session, the USDSGD pair edged lower, slipping 0.1% to 1.3472. This movement is likely a result of position adjustments by traders ahead of the release of key US economic data later today.

The market is particularly focused on the US consumer confidence report by the Conference Board for May.  

Chart displaying USD/SGD exchange rate at 1.34748 with a trend of -0.09%, reflecting the US dollar edging lower against the Singapore dollar ahead of economic data release. The chart features moving averages (MA) and MACD indicators. The USD has been under pressure due to mixed economic data and uncertainty regarding the monetary policy direction by the Federal Reserve. Image hosted by VT Markets, a forex CFDs brokerage.

Picture: USDSGD slipped to 1.3472, as observed on the VT Markets app

Uncertainty in the US 

A softer-than-expected consumer confidence reading could weigh further on the USD, as foreign exchange markets continue to be highly data-dependent.

From a technical perspective, the support level for USDSGD is at 1.3400, while resistance of the currency pair is at 1.3500. These technical levels are important for traders to monitor along market reaction to the upcoming data release. 

Related article: Understanding support and resistance in trading 

The USDSGD movement today also reflects broader market sentiment. The USD has been under pressure due to mixed economic data and uncertainty of the monetary policy direction by the Federal Reserve.  

Market possibilities for SGDUSD 

If the consumer confidence data comes in weaker than expected, USDSGD could test the support level at 1.3400.

Conversely, a stronger-than-expected reading might push the pair towards the resistance level at 1.3500. In the longer run, USDSGD may continue to react to US economic data releases and Federal Reserve policy signals.   

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