USD/MYR Technical Analysis

The US Dollar lost steam against Ringgit on Tuesday and dropped to 4.1680. The Dollar’s decline against Ringgit comes in the opposite direction from the rest of the market as the US Dollar gained ground against most of its counterparts. This places Ringgit as one of the best performers of the day. On Thursday, the FOMC Meeting Minutes can provide a good direction for the Dollar, as the details of the tapering process for Dollar can be discussed at that meeting. On Wednesday, data from the Consumer Price Index, also for the Dollar, may dictate the direction of the market, as the Fed will be using this information to formulate the next steps in monetary policy. From Ringgit, the market welcomed the details of the 12th Malaysian Plan, which seeks, among other things, sustainable growth. From a technical point of view, if the USDMYR breaks above 4.1930, it could rise to 4.2400 in a few days.