The Dollar remains sideways against Ringgit for the 7th consecutive day and is now trading at 4.1835. The trade balance data for Ringgit, released yesterday, brought better-than-expected numbers (21.4 billion vs. 11.8 billion forecast) and this has the potential to increase Ringgit’s value. Also, Pending Home Sales for the US Dollar came in much higher than expected (8.1% real versus 1.4% forecast). As the news for the MYR and the USD had the potential to appreciate both currencies, the USDMYR pair remained sideways. On Friday, the ISM Manufacturing PMI for the US Dollar will bring more information about the business sentiment in the US. From a technical point of view, if the USDMYR breaks the 4.1930 level, it could rise to 4.2400 in a few days.
Ringgit has been sideways against the Chinese Yuan since Sept 22nd and is now trading at 1.5420. Earlier on Wednesday PM Ismail Sabri announced that the Klang Valley will move to Phase Three of the National Recovery Plan from Oct 1st, and this has the potential to make the MYR gain more ground against the Chinese Yuan. On the other hand, China may implement a further cut in the reserve required for banks in Q4, with the aim of facilitating access to credit and making more money available to help banks. From a technical standpoint, MYRCNH made a higher bottom (September 22) than its previous bottom (July 29) which could be the start of a new bullish move. If MYRCNH breaks above 1.5480, it could rise to 1.5880 in a few weeks.
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© 2019 High Leverage FX - All Rights Reserved.