With South East Asian region recovering from the American and European financial crisis, Singapore managed to registered an impressive 26 percent y.o.y GDP growth in the second quarter . Singapore’s growth for the first quarter was revised to 45.9 percent, the fastest since records began in 1975. GDP is expected to rise between 13 percent and 15 percent in 2010, compared with an earlier forecast of as much as 9 percent, the ministry said. The growth is expected the highest in the world.
China, the world’s third-largest economy, recorded an expansion of 10.3% in the second quarter, slower than 11.9% achieved in the first quarter.
Malaysia which recorded a 10.1% rise in the first quarter is expected to announce its second-quarter GDP numbers next month. Thus far, economists are expecting to see a growth rate of around 7.5% to 8.5% for the quarter.
As expected, the week saw the Singapore Dollar appreciated more than the Ringgit against the US Dollar. Refer to the chart below. The USD/SGD candles is in red and green color while the USD/MYR is in dark orchid color. The USD/SGD has moved passed previous week low while USD/MYR pair was stop dead at previous week low.
The USD/MYR pair is still on the downtrend (refer to the chart below) despite a two day upward spike in prices. There may be an effort by the authority to lessen the appreciation of the ringgit in order to make FDI more attractive especially in the local bourse (http://myfxfix.blogspot.com/).
The stochastic has moved passed the 20 level but turning back down with MACD histogram oscillating at the zero level and at negative territory . The pair sentiment is still bearish with previous week stated support at 3.18 and the second support at 3.17 is still valid. Inability to overcome the resistance level at 3.2776 still indicated the pair bearish tone.
