USD/SGD fell further this morning, taking cues from a softer USD and another round of gains in RMB, JPY, OCBC FX strategists Frances Cheung and Christopher Wong note.

USD is oversold

“We cautioned that the sharp move lower in USD/RMB did not see follow-through via policymakers’ daily USD/CNY fixing. As such, the RMB momentum may not be sustained intra-day.”

“Pair was last seen at 1.3201 levels. Daily momentum is bearish but RSI is in oversold conditions. Cautious of rebound risks. Resistance at 1.33 (23.6% fibo), 1.3390 (38.2% fibo retracement of Oct high to Jan low) and 1.3460 (200 DMA, 50% fibo).”

“S$NEER was estimated at ~1.78% above our model-implied mid, but has started to ease away from its upper bound.”