The Singapore Dollar (SGD) and Chinese Yuan (RMB) both exhibited mild upside bias against the US Dollar (USD), according to recent analyses from United Overseas Bank (UOB) and OCBC, respectively. UOB's Quek Ser Leang noted that the USD/SGD pair slipped to 1.2775 before rebounding, closing at 1.2789, a 0.10% decline. While there is a chance for USD/SGD to retest 1.2775 intraday, support at 1.2765 is expected to hold, and resistance is seen at 1.2805, with a breach of 1.2815 indicating an easing of downward pressure. Over the next 1–3 weeks, further downside for USD/SGD would require a clear break below 1.2765, targeting 1.2740, while resistance at 1.2830 caps the topside. The overall momentum for USD/SGD has slowed, and the pair has been trading mostly sideways within a defined range [1].
Meanwhile, OCBC analysts Sim Moh Siong and Christopher Wong highlighted that USD/CNH is trading near recent lows as Chinese policymakers allow a measured pace of RMB appreciation, while resisting an overly rapid move through a sizeable fixing premium. On Friday, the USD/CNY fixing was set at 6.7878, the lowest since February 2023, but still about 460 pips higher than the Bloomberg fixing survey and 430 pips above the USD/CNH spot rate. This approach signals that policymakers are guiding the RMB higher but are cautious about excessive volatility [2].
China's weaker-than-expected July credit data added to concerns about domestic demand. New yuan loans totaled CNY10.38 trillion year-to-date through July, down from CNY12.87 trillion in the same period a year ago. On a month-on-month basis, there was an implied contraction of CNY340 billion in July. Aggregate social financing also fell to CNY22.25 trillion year-to-date July, compared to CNY23.9 trillion a year earlier. Despite these concerns, factors such as exporter conversions, the fixing bias, and broader USD sentiment are seen as important offsets for the RMB [2].
Technical indicators for USD/CNH are described as flat, with support at 6.74 and 6.72, and resistance at 6.7580 (21-day moving average) and 6.7730 (50-day moving average). USD/CNH was last at 6.7450 [2].
CONCLUSION
Both the Singapore Dollar and Chinese Yuan are showing mild strength against the US Dollar, with policymakers in China guiding a gradual appreciation of the RMB while managing volatility. Despite weak Chinese credit data raising concerns about domestic demand, FX market reactions remain measured, supported by technical levels and policy actions. The overall market impact is moderate, with no indications of sharp moves in either currency pair.