As the unemployment rate has been gradually decreasing in the US, it can be interpreted that the Central Bank is achieving its objective of bringing employment to levels before the beginning of the pandemic. At this point, it is imperative to take measures to control inflation. The most important macroeconomic news this Tuesday is Retail Sales for the dollar, which may give tips on US consumption and the behaviour of the Dollar in the coming days. A higher-than-expected reading could cause the Dollar to break above 4.2370 and seek the 4.2890 level, while a lower-than-expected reading could cause the breakout below the 4.2150 level. and fetch 4,1750.
The Ringgit has been losing value against the Chinese Yuan over the past few months and is now trading at 1.5250. This situation is a reflection of the considerable increase in Covid-19 cases in the country, which despite the efforts of the Ministry of Health, the number of cases has reached new highs. With restrictions across the country, the Malaysian economy and Ringgit may have some difficulty in regaining a pace of growth over the next few months. Over the next week, investors will be paying attention to the Consumer Price Index for Malaysia, which could provide valuable insight into the country’s economic situation and inflation. From a technical point of view, as the price is close to a support region, if the MYRCNH breaks above the 1.5312 level, it could reach the 1.5590 level in a few days.
