After a few days of bullish moves, the Dollar retracted against the Ringgit and is now trading at 4.1800. The downward movement today reflects the Initial Jobless Claims data, which came in above expectations (320k forecast against 351k real), which tends to be negative for the Dollar. Added to this, the Services PMI, which measures the confidence in the economy by the purchasing managers in the services sector, came in below expectations (55 forecast against 54.4 reais). Both things made investors bet on the dollar’s fall in a possible anticipation that the tapering process will extend to December, and it caused the dollar to devalue against its counterparts and against Ringgit. A pullback to 4.1550 is expected, where USDMYR may find some buying strength in the near term.
The US Dollar held steady against the Chinese Yuan this Friday and is now trading at 6.4590. The FOMC minutes released yesterday brought the information that the Fed may start withdrawing the financial stimulus in the next meeting in November and this caused the USD to appreciate against its counterparts yesterday. The interest rate for the USD remained unchanged, as expected. The Initial Jobless Claims data, released today, brought an increase in the number of people who applied for unemployment insurance in the last week, which is potentially negative for the Dollar. As the interest rate remained unchanged for the CNY earlier this week, the market operated in a feeling of indecision. From a technical point of view, a buying pressure could push the USDCNY up to the 6.5,000 level, where it could encounter selling resistance.
