The US Dollar was up +0.16% against the Ringgit on Monday and is now trading at 4.4170. Despite being a bullish day, volatility is low, mainly showing the sentiment of indecision. The most important news for the day was the ISM Manufacturing Purchasing Managers Index (PMI) for the US which brought a lower-than-expected reading (46.3 real against 47.5 forecast). The ISM PMI measures purchasing managers’ level of confidence in the future economic scenario through surveys conducted with 400 companies across the US. Readings below 50 tend to show economic contraction as most purchasing managers are likely to be purchasing fewer raw materials and hiring fewer employees than the previous month. This could cause USDMYR to drop a bit more over the next few days. From a technical point of view, USDMYR can rise to the resistance region at 4.4500 and then fall to 4.3650 in a few days.
