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Explore the live buy and sell prices, as well as the spread of AUD/SGD. Discover trading opportunities, key factors that influence AUD SGD, and common pitfalls to avoid in your trades.
Summary
The AUD/SGD pair shows how many Singapore dollars you need to buy one Australian dollar, with the "Aussie". This cross reflects the strong trade relationship between Australia's resource-heavy economy and Singapore's financial hub status. The pair exhibits moderate volatility with predictable patterns, especially during Asian trading hours when both economies are most active.
This strategy capitalizes on the moderate negative correlation between iron ore prices and AUD/SGD movements. When iron ore prices decline significantly, consider long AUD/SGD positions with 15–25 pip stops. Use the ASX SPI 200 futures during Asian trading hours for confirmation signals, and pay attention to key Australian economic indicators, such as employment data, that can trigger short-term volatility against your position.
Position yourself 20 pips above and below current levels before Reserve Bank of Australia (RBA) announcements, which are scheduled eight times per year. These decisions often trigger 30–50 pip moves, especially when housing market concerns arise. Use a trailing stop set to half the initial move to lock in gains. Australia’s high mortgage exposure makes RBA rate decisions particularly impactful, increasing short-term volatility in AUD pairs.
Focus on the 00:00-06:00 UTC overlap when both the Sydney and Singapore markets show institutional flow. Look for 15-30 pip consolidation ranges during this period, then trade breakouts with targets equal to the range size. Tuesday and Wednesday sessions typically offer the cleanest setups, as Monday gaps settle and Thursday profit-taking hasn't begun affecting institutional positions.
Driver
Why it matters
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Australia's iron ore exports account for 15% of GDP, creating a strong negative correlation with AUD/SGD when commodity prices shift significantly.>>
The interest rate differential between the Reserve Bank of Australia (RBA) and the Monetary Authority of Singapore (MAS) creates carry trade opportunities that often influence medium-term directional trends in AUD/SGD. Traders can take advantage of these differentials by monitoring policy shifts and adjusting positions accordingly.>>
Oil, LNG, and coal export fluctuations influence SGD strength against commodity currencies, particularly during Asian energy demand cycles.>>
Policy changes and trade tensions between these major partners affect cross-border capital flows that impact both currencies simultaneously.>>
With 20% trade dependency between the countries, Australian GDP, employment, and housing data amplify typical forex pair reactions.Disclaimer: Keep in mind that monetary policies, geopolitical tensions, or recent macro data can quickly change the direction of this pair.
Many traders assume that movements in iron ore prices immediately reflect in AUD/SGD fluctuations. While there is often a negative correlation between the two, this relationship can weaken during periods of shifting macroeconomic sentiment or changing demand from key trading partners. It’s important to validate trade ideas with real-time price action rather than relying solely on commodity data.
How to dodge it: Use iron ore and coal prices as directional bias only, then wait for technical confirmation through support/resistance breaks or momentum indicators. Set correlation alerts when the coefficient drops below -0.50 to avoid false signals during periods of weakening relationships.
Australia's housing sector represents 13% of GDP, making building approvals and home price data crucial for AUD direction. The RBA's housing market concerns directly impact rate decisions, yet many traders focus only on traditional economic indicators like employment and inflation.
How to dodge it: Monitor monthly building approvals, quarterly home price indices, and construction sector PMI data. When housing data contradicts other economic indicators, give housing metrics higher weight in your analysis since the RBA prioritizes housing stability in policy decisions.
Australia and Singapore observe different holiday calendars, creating unique liquidity gaps that can trigger 25+ pip moves on thin volume. These gaps often reverse quickly but can stop out positions before the correction occurs.
How to dodge it: Check both countries' holiday schedules before major position sizing, and reduce leverage by 50% during holiday weeks. Set wider stops (35-40 pips instead of 20-25) and avoid holding positions over long weekends when both markets close simultaneously.
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Find answers to commonly asked questions about forex trading on Taurex, including topics related to account setup, platform features, trading conditions, and more.
The correlation between iron ore prices and AUD/SGD tends to be moderately negative, meaning price drops in iron ore often align with AUD/SGD strength. However, this relationship fluctuates over time. It typically strengthens during periods of strong Chinese demand and weakens when Singapore’s financial sector outperforms the region. Regularly monitor the correlation coefficient to adjust your strategy weighting based on prevailing macro conditions.
Housing represents 13% of Australian GDP, while household debt reaches 200% of disposable income, among the world's highest ratios. The RBA explicitly targets housing stability, making building approvals and home prices leading indicators for rate policy. When housing data contradicts other economic indicators, the RBA typically prioritizes housing stability, creating AUD volatility that other central banks wouldn't generate.
Peak activity occurs during 00:00-06:00 UTC when Sydney and Singapore overlap, generating 60% of daily volume. Tuesday and Wednesday sessions offer the cleanest technical setups, while Monday gaps from weekend news and Friday profit-taking create choppy conditions. Avoid trading during 08:00-12:00 UTC when both markets show reduced institutional flow and wider spreads.
For standard lots (100,000 AUD), each pip equals 10 SGD. Convert to your account currency using the current SGD exchange rates. Mini lots (10,000 AUD) equal 1 SGD per pip. If your account is in USD, multiply the SGD pip value by the current SGD/USD rate. Position sizing should account for AUD/SGD's average 40-pip daily range when setting risk parameters.
Most brokers offer 50:1 to 100:1 leverage for AUD/SGD, requiring 1-2% margin. However, the pair's 40-pip average daily range suggests using lower leverage (20:1 to 30:1) for swing trades. Day traders can utilize higher leverage but should limit exposure to 2% account risk per trade. Margin requirements increase during RBA announcements and major Australian data releases.
