CCY Corner: SGD Eases Relative to USD

Monitoring Asian Currencies - ADXY

USDSGD

The unexpected monetary easing by Singapore have provided a surprising welcome treat assisting the economy. This led an initial price recovery for the USDSGD from a low @1.3422 and currently working @1.3600 still well within a corrective phase. The recent decline came from the Jan high @1.4440 last marked & dated the week of Jan 4, 2016. The price recovery may take some time to cover the trading range from its HI/LO price levels.

The registered low has created a similar divergent trend that led to a similar chart pattern comparison with the USDJPY price movement from the low @107.63 and have made a decent price recovery currently @109.65. We are referring to similar market behavior in various market conditions contrary to different monetary policies expectations and with the varied approach of assisting each country's economic recovery.

Thus, the subsequent moves by central banks again is no real surprise which have somehow dictated markets at most times have out-balanced traders of unexpected release of data. The spill-over in the market also provided support for the USD to hold its current ground for its counter-part with the JPM Asian Dollar Index (ADXY) - staying above the 108.00 support level which is being retested from the recent decline. Monitoring the market behavior of Asian currency relative to the USD would surely assist traders and investors a better understanding where Asian currencies stand with the recent surge of the USD index in the US trading session.