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AUD/SGD had a good run, up 4.4% in July-August. At any rate, the cross respected top side barrier at 1.01, which has not been breached since late 2018, suggesting the pair peaked at par, according to analysts at ANZ Bank.

Key quotes

“We expect AUD to continue to benefit from an improving external environment (notably in China) and USD weakness, amid ample global liquidity. The domestic picture is weaker, but there is fiscal space to provide further support to the economy. We thus expect AU/SGD to trade around the current level after a run-up in JulyAugust.”

“Our current forecast profile points to a broadly steady AUD/SGD in the coming year. Clearly, the farther into 2021, the higher is the risk of a change in the profile. However, at least for the near-term, a steady AUD/SGD could see implied volatility falling further.”