USDMYR Technical Analysis

The US Dollar starts to decline this Thursday and is now trading at 4.6290. The downward movement starts after the announcement of the ADP Non-Farm Employment Change data for the USD, which came in above expectations but still at a low value (208k actual versus 200k forecast). The ADP measures the change in employment across large US private sector companies, so it is an indicator that is considered by many to be a preview of the Non-Farm Payroll (NFP). The NFP is the official (and therefore the most important) measure of how the US labour market is doing as it measures job creation across all sectors of the economy excluding the agricultural sector. The NFP data is released on the first Friday of each month and also includes the US unemployment rate, which is one of the main indicators that help the Federal Reserve (FED) make decisions about monetary policy. Overall, job creation reported by ADP today shows a slightly positive reading, but still low. From a technical point of view, the USDMYR finds itself in a very important region of resistance and a bearish move should begin soon.