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