According to OCBC strategists Sim Moh Siong and Christopher Wong, the USD/SGD currency pair has turned slightly softer, influenced by gains in the Renminbi (RMB) as the US Dollar consolidates [1]. The strategists note that the risks for USD/SGD are currently skewed to the downside, with technical support levels identified at 1.29 and 1.2840, and resistance at 1.2980 [1]. The pair was last observed at 1.2915, with mild bearish momentum and a declining RSI, indicating further potential for downside movement [1].
The strategists emphasize the strong correlation between USD/SGD and the US Dollar Index (DXY), suggesting that the pair will continue to take cues from external drivers, particularly the upcoming United States Consumer Price Index (CPI) release and testimonies from Fed Chair Warsh [1]. These events are highlighted as key factors that could influence the direction of USD/SGD in the near term [1].
On the Singapore data front, the release of 2Q26 GDP is scheduled for 14 July, followed by Non-Oil Domestic Exports (NODX) data on 19 July [1]. While these domestic data points are noted, the strategists maintain that external US-related events are likely to have a more significant impact on the currency pair's movement in the current environment [1].
CONCLUSION
USD/SGD is currently exhibiting mild bearish momentum, with downside risks prevailing as the market awaits key US economic data and Fed Chair Warsh's testimonies. Technical levels and external drivers remain central to the pair's outlook, with domestic Singapore data also on the horizon but seen as secondary influences.