AUD to SGD exchange rate on the rise again following soft Monday
Despite recent rallies, the AUD/SGD forex pair continues to trade at ten-year lows.
The AUD/SGD forex pair is on the ascend once again, following a slow start to the week.
The Aussie dollar is up against the Singapore dollar by 0.33% as at 15:33 SGT on Tuesday 21 April 2020. The AUD to SGD exchange rate is at A$1.00000 to S$0.90050 – a ten-year low, based on latest IG trading data.
In terms of SGD to AUD perspective, the exchange rate is currently at S$1.0000 to A$ 1.1122, according to Bloomberg.
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AUD to SGD sees slight uptick alongside SGD weakness
On Monday, the pair had dropped roughly 1.2%, erasing most of the gains that it had made at the tail end of last week. The Australasian pair had risen 1.4% last Thursday 16 April and Friday 17 April, despite weak economic data coming out of China on Friday. China’s Gross Domestic Product fell 6.8% in Q1 of 2020.
But the AUD, which has historically taken its cue from the Chinese economy, was able to move up a few notches thanks to developments coming out from the other side of the Pacific.
On Thursday, US President Donald Trump revealed his plans to reopen the economy, with guidelines to be announced later. At least 32 states out of 50 have been in partial lockdown since late-March, as the number of coronavirus infections quickly rose past the 700,000 mark.
Meanwhile, IG data shows that some weakness is still present in the SGD, as it continues to weaken against other major currencies, including the US dollar (US$1 = S$1.42633), Japanese yen (S$1 = ¥75.300), and British pound (£1 = S$1.76949).
This combination of factors has allowed the AUD to maintain an SGD support level of S$0.89369 since Good Friday.
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AUD to SGD likely to remain within S$0.88000 to S$0.91000
UOB FX analysts noted that the forex pair’s daily closing price (Eastern Time) is ‘on the weak side (0.90010, -0.45%)’ and that ‘downward momentum has picked up’.
They also predicted that ‘barring a move above 0.90600 (minor resistance is at 0.90300)’, the Australian dollar is expected to weaken towards 0.89600, with its next support estimated to be at 0.89300.
They further wrote in the same daily note that the AUD is likely to trade within a broad 0.88000/0.91000 range for now, as a short-term top is already likely in place. Any major reversal in either direction, however, is still too early to call.
While the AUD/SGD pair could trade under pressure for now, any weakness will be considered as part of the broader 0.8800/0.9100 range. ‘Looking ahead, AUD has to close above 0.9130 in order to indicate that is ready for to move higher in a sustained manner,’ the analysts concluded.
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