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Singapore Dollar: Strong NODX but USD still drives USD/SGD
Developing
In Short: OCBC's Christopher Wong says strong electronics exports and broad-based market strength drove the surge, but USD dynamics will still influence SGD.
OCBC's Christopher Wong highlighted that Singapore's August NODX surged 46.2% year-on-year, far exceeding expectations, with electronics exports leading the growth due to AI-related demand.
The robust external environment has prompted OCBC economists to upgrade their 2026 NODX forecast to a 20% year-on-year increase.
Despite this positive outlook, Wong noted that the immediate impact on the Singapore Dollar (SGD) is unlikely to be significant, as the USD remains the primary driver of the USD/SGD exchange rate.
What's still developing
- USD/SGD has eased with lower US yields and a softer Dollar, and future SGD performance will hinge on US yield and Dollar dynamics.
- AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot.
Sources
- FXStreetlink