Maybank FX Flash - SGD: No Change to MAS SGD Policy As Expected - 14 Apr 2015

SGD: No Change to MAS SGD Policy As Expected

§  The MAS kept its policy stance of a “modest and gradual appreciation” SGD NEER unchanged at today’s b-annual policy meeting as expected with the policy variables – namely slope and width of the policy band, and the level at which it is centred – unchanged. §  Statement seems to have a slight hawkish stance with MAS appears concerned about the stronger pass-through to consumer prices over the medium term. This could signal that further easing moves might not be forthcoming and that the policy stance could be maintained going into 2016 unless growth surprises significantly on the downside over the next six months. §  There was a 1-big figure move by the SGD this morning vs. the USD from 1.3732 to 1.3631 writing. In the medium term, some of these gains could reverse as we still expect the recent USD appreciation trend to continue. Key level at 1.3660 (50DMA) needs to be watched as a sustained close below that level could see near term downside pressure in the pair. 1.3570-1.3360 range in focus intraday. 4-hourly momentum and oscillator indicators are indicating a bearish bias. Continue to accumulate on dips.