NODX's weaker-than-expected 0.5% jump was a catalyst.
IG Singapore Market noted:
This morning the greenback gained against the Singapore dollar to trade back around 1.24, as Singapore’s trade agency reported a weaker-than-expected 0.5% year-on-year increase for non-oil domestic exports (NODX) in the city state.
This rise in exports is largely a result of the strong non-electronic exports, which outweighed the decline in the important electronics sector. Earlier this month, the January PMI figure release showing a rise in Singapore’s manufacturing activities - after six consecutive months of contraction - might suggest that the export data should also start to pick up soon.
OCBC Tresury Research said:
For the SGD, the disappointing Dec retail sales and Jan nonoil domestic exports, coupled with a supported broad dollar tone, should see the pair search out higher ground in the near term within a 1.2350-1.2450 range.
The SGD NEER meanwhile is around +0.77% above its perceived parity (1.2410) with the extreme strong end of the NEER fluctuation band expected at around 1.2320.
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