USDMYR Technical Analysis

The US Dollar remained sideways against the Ringgit on Thursday and is now trading at 4.4500. The feeling of indecision comes as many investors are awaiting the release of Nonfarm Payrolls (NPF) data for the USD tomorrow. The NFP measures the change in the number of people employed during the previous month, excluding the farming industry and is therefore an excellent way to understand the US job market. Another important element to be released tomorrow is the unemployment rate. The latest reading came in at 3.5%, one of the lowest since the start of the pandemic and analysts believe tomorrow’s reading should come in at 3.6%. If investors understand that the job market in the US is heated, this could cause the USD to fall, as the Federal Reserve (FED) will likely continue to raise interest rates to control inflation. From a technical point of view, USDMYR is in a resistance region and could drop as low as 4.3650 in a few days.