USDMYR Technical Analysis

The US Dollar rose 0.49% against the Ringgit this Friday and is now trading at 4.2110. The Initial Jobless Claims data came in higher than expected (207k real against 197k forecast), yet the numbers remain very low compared to the historical series. The rally in the USD also reflects the optimism of the investors because of the ADP Nonfarm Employment Change, released on Wednesday, which came in more than double the expected (807k real against 400k forecast). The scenario of strong economic recovery in the US labour force should be confirmed by the Non-Farm Payroll, to be released on Friday. From a technical standpoint, the USDMYR is likely to test the 4.2400 region in a few days.