Singapore dollar drops on sharp slowdown in growth rate

Singapore dollar is being offered after the data released showed the economy expanded at a slowest rate in 7 years in third quarter.

USD/SGD pair recovered from the session low of 1.3775 and was last seen trading just short of previous day’s high of 1.3869 levels.

SGD came under pressure as Singapore reported third quarter GDP at 0.6% y/y, which is well below the consensus estimate of 1.7%. This was the slowest rate in 7 years. Meanwhile, the Monetary Authority of Singapore kept the width of the policy band and the level at which it is centred unchanged today.

USD/SGD Technical Levels

A break above 1.3869 (previoud day’s high) would open doors for 1.39 (zero figure), above which the spot could target 1.3940 (Mar 3 high). On the lower side, 1.3810 (50-DMA) could offer support which if taken out would shift risk in favor of a drop to 1.3756 (10-DMA) and 1.37 levels.