USD/MYR Technical Analysis

The US Dollar held steady against the Ringgit on Friday and is now trading at 4.1840. Initial Jobless Claims data brought in a slightly lower-than-expected figure (238k actual versus 245k forecast), which tends to be good for the USD. The ISM Non-Manufacturing PMI came in slightly higher than expected (59.9 real against 59.5 forecast), which also tends to be good for the USD. Still, the feeling of indecision remains as investors are waiting for the Non-Farm Payrolls data and the US unemployment rate to be released later. If the NFP comes in line with expectations or above, it could signal a tightening of monetary policies for the USD at the next FED meeting, which could cause the USDMYR to rise. On the part of Malaysia, with more than 50% of the population having taken the booster dose of the vaccine, the number of Covid cases has increased, but has still remained under control, which has favoured local trade and tourism, as well as to MYR. From a technical point of view investors are paying attention to the breakout of the 4.2050 level for a possible bullish move or the breakout below the 4.1800 level for a possible bearish move.