FxWirePro: Singapore dollar falls in early Asia despite higher than expected GDP data

• USD/SGD is currently trading around 1.3546 marks.
   
• It made intraday high at 1.3549 and low at 1.3508 levels.
   
• Intraday bias remains bullish till the time pair holds key support at 1.3510 mark.
   
• A daily close above 1.3523 will test key resistances at 1.3580, 1.3637, 1.3692, 1.3788, 1.3822, 1.3949, 1.4046, 1.4095, 1.4128, 1.4219 and 1.4310 levels respectively.
   
• Alternatively, a consistent close below 1.3523 will drag the parity down towards key supports at 1.3496/1.3460/1.3401/1.3346/1.3217/1.3164/1.3005 levels respectively.
   
• Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart. Current upside movement is short term trend correction only.
   
• Given the economic outlook at this stage and consistent with medium-term price stability, MAS will maintain the rate of appreciation of the S$ near policy band at zero pct – MAS.
   
• MAS - Headline inflation is expected to come in at around 0.5% this year, and stay in the range of 0–1%in 2018.
   
• MAS - Core inflation is projected to come in at around 1.5% in 2017 and average 1–2% next.
   
• Singapore Q3 GDP +6.3 pct qtr/qtr annualised seasonally adjusted rate (poll +3.2 pct).
   
• Singapore Q3 GDP +4.6 pct yr/yr (poll +3.8 pct).

We prefer to take long position in USD/SGD only above 1.3552, stop loss 1.3502 and target of 1.3580/1.3637.

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