USDMYR Technical Analysis

The US dollar resumed its bullish move against the Ringgit on Wednesday and is now trading at 4.6130, accumulating a gain of +0,33% in the day. The upward movement happens due to the release of the US JOLTs Job Openings which measure the number of jobs available on the last business day of the month based on a survey conducted by the US Bureau of Labour Statistics with several US companies. Today’s reading came in higher than expected (10,103M actual versus 9,775M forecast), which tends to be good for the USD. In general, this indicator is closely related to the unemployment rate. More jobs available means business is optimistic, and the economy is doing well. If the economy is doing well, then people tend to consume more goods, products and services. This scenario tends to be inflationary, which may cause the Federal Reserve (FED) to decide to raise interest rates to control inflation and it causes the USD to strengthen against its counterparts. From a technical point of view, USDMYR is in a region of potential exhaustion. If the price manages to break below 4.5860, it could drop as low as 4.5250 in a few days.