The US Dollar has shown strength against both the Chinese Yuan (CNH) and Singapore Dollar (SGD), with notable movements in the USD/CNH and USD/SGD currency pairs. According to United Overseas Bank (UOB), USD/CNH spiked to 6.7980 before reversing, closing largely unchanged at 6.7807 (+0.04%) [1]. UOB analysts Quek Ser Leang and Lee Sue Ann expect the pullback to extend within a 6.7740–6.7900 range in the near term, but maintain that another test of 6.8000 is possible over one to three weeks as long as support at 6.7600 holds, despite subdued momentum [1]. The pair remains firm near resistance, with analysts noting that upward momentum has not increased significantly, yet the possibility of further gains persists [1].
Meanwhile, OCBC strategists Sim Moh Siong and Christopher Wong report that USD/SGD is trading with a bid tone, reflecting the firmer USD backdrop. The pair was last seen at 1.2917, with resistance at 1.2940 and support near 1.2840/50 [2]. Daily momentum is described as mildly bullish, and consolidation near the upper range is expected to persist [2]. The strategists highlight that higher US Treasury yields and fragile risk sentiment are likely to keep USD/SGD supported ahead of the Singapore Consumer Price Index (CPI) release and the July Monetary Authority of Singapore (MAS) meeting [2].
OCBC notes that a reacceleration in core CPI could reinforce market expectations for another MAS tightening, which may support the SGD. However, the path for SGD is expected to be choppy, with the currency remaining relatively resilient among Asian peers if oil prices stay contained [2]. Despite this resilience, the firmer USD and broader market uncertainties are likely to keep USD/SGD elevated in the near term [2].
Both reports emphasize the influence of US Dollar strength and upcoming policy events on Asian currency pairs, with analysts maintaining cautious optimism for further USD gains against CNH and SGD, contingent on key support levels and economic data releases [1][2].
CONCLUSION
The US Dollar's strength is exerting pressure on both the Chinese Yuan and Singapore Dollar, with analysts expecting further tests of resistance levels in the near term. Upcoming economic data and policy meetings, particularly the Singapore CPI and MAS decision, are likely to influence market direction. While the SGD may remain resilient, both currency pairs are expected to trade within upper ranges as market sentiment and US yields drive short-term movements.