USDMYR Technical Analysis

The US dollar is down -1.01% against the Ringgit on Monday and is now trading at 4.5070. The downward movement happens as a natural reaction of the market after the extensive upward movement that happened in the USDMYR over the last few months. Another element favouring the fall of USDMYR is the release of the U.S. Chicago Purchasing Managers Index (PMI), which came lower than expected (42.8 actual against 43 forecast). One element that draws attention is that this PMI has brought constant readings below 50 since August 2022, which may show a scenario of economic pessimism among purchasing managers. This week, investors should pay attention to the release of the ISM Manufacturing PMI for the month of July (to be released tomorrow). The ADP Nonfarm Employment data, to be released on Wednesday may give direction for the USD for a couple of days. And on Friday, US Nonfarm Payrolls and Unemployment Rate in the US could set the tone for the market for the weeks to come. From a technical point of view, USDMYR could drop as low as the 4.4600 region, where it should find temporary support.