News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here: https://t.co/aVAzFypAg1 https://t.co/7mc19Gxrvm
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here - https://www.dailyfx.com/forex/fundamental/forecast/weekly/chf/2020/09/26/Gold-Price-Outlook-Rising-US-Dollar-Sinks-XAUUSD-Will-Losses-Extend.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/gPhy0KoW3W
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/38gTDnpPbn https://t.co/Xtk5g4JQEB
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/3Wked6GBOp https://t.co/SsUguHB39W
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:https://t.co/1oygcFMFNs https://t.co/aD1ZWhTWZp
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here: https://t.co/719LgjFmYG https://t.co/SSoqjONUzA
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here: https://t.co/HJpngnerzY https://t.co/g6X8ABQDwY
  • The Indian Rupee may be at risk to the US Dollar as USD/INR attempts to refocus to the upside. This is as the Nifty 50, India’s benchmark stock index, could fall further. Get your USD/INR market update here:https://t.co/ed4QR7QQOn https://t.co/gDWYNtm2UY
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/Q7TcbrYXjl
  • #Gold prices have plunged nearly 11% off the record highs with a breakout risking further losses. Here are technical trade levels that matter on the XAU/USD weekly chart. Get your #metals update from @MBForex here: https://t.co/7p3jPx6nQd https://t.co/yxymjCHti6
USD/SGD May Rise on Fed as Crude Oil Weakness Stems USD/PHP Rise

USD/SGD May Rise on Fed as Crude Oil Weakness Stems USD/PHP Rise

2019-04-29 03:30:00
Daniel Dubrovsky, Analyst
Share:

ASEAN Fundamental Outlook

  • Indonesian Rupiah, Philippine Peso weakened as the US Dollar rose
  • China manufacturing PMI may surprise higher, sinking USD/MYR
  • Fed may sour sentiment, lifting USD/SGD as oil fall upholds PHP

Trade all the major global economic data live and interactive at the DailyFX Webinars. We’d love to have you along.

US Dollar and ASEAN FX Recap

The US Dollar had its best week in two months, guided higher on multiple accounts of risk aversion which fueled demand for the highly liquid currency. This ended up pressuring its ASEAN counterparts with the Indonesian Rupiah one of the worst-performing ones. This past week, the Bank of Indonesia left rates unchanged while expanding measures to boost liquidity. Expectations of a cut have been increasing.

As crude oil prices initially climbed this week on Iranian supply disruption concerns, the Philippine Peso continued to depreciate before leveling off on Friday. Meanwhile, the Malaysian Ringgit ended mostly little changed after pronounced declines. USD/MYR, amidst general Greenback gains, hovered as the FTSE Bursa Malaysia KLCI Index rose. Capital outflows fears seemed to have subsided for the time being

ASEAN FX 5-Day Performance Versus US Dollar

Regional ASEAN Docket

Regionally, ASEAN currencies will have Chinese manufacturing PMI data to potentially look forward to. According to the Citi Economic Surprise Index for China, data has been tending to increasingly outperform relative to economists’ expectations as of late. An upside surprise may bolster PHP and MYR given how the Philippines and Malaysia have key trading relationships with the world’s second-largest economy.

For the Indonesian Rupiah, the week ahead contains domestic inflation data. Indonesia CPI is expected to clock in at 2.6% y/y in April from 2.5% in March. The nation has been experiencing disinflation since the Bank of Indonesia took on rate hikes last year to help stabilize the Rupiah. Supportive inflation data may boost IDR as it may lessen the haste for the central bank to consider cutting rates.

External Risks

A key event that can have major implications for general risk trends is the Fed rate decision. If the central bank shows hesitation in wanting to favor a cut or does not drop hints that one may come in the near-term, dovish expectations may be disappointed. This is a weakness for equities and by extension sentiment-linked crude oil prices. While such an outcome may boost USD, PHP may stabilize if oil prices keep weakening.

But that is not all, the US economic calendar docket is quite dense. Items such as the latest jobs report and the core PCE deflator, which is a favored measure of inflation by the Fed, are up. Unlike in China, outcomes relative to expectations have been tending to disappoint. While this may fuel Fed rate cut bets, it also risks denting sentiment and the S&P 500. That may in-turn boost the US Dollar and USD/SGD which tends to closely trace DXY.

You may follow me on twitter here @ddubrovskyFX for timely updates on how these impact financial markets and ASEAN FX.

FX Trading Resources

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES