USD/MYR Technical Analysis

The US Dollar made a down movement against the Ringgit on Tuesday and is now trading at 4.1980. The US employment data released last week showed strong job creation in recent months and the lowest unemployment rate since the beginning of the pandemic (3.9%). This shows that the US is achieving its goal of bringing employment back to pre-pandemic levels – the reading of the unemployment rate was 3.6% in March 2020. From a Malaysian point of view, the Industrial Production came in higher than expected (9.4% real against 7.3% forecast) and this may have been the main element of the MYR appreciation against the USD today. From a technical standpoint, it is possible that USDMYR will rally to test the 4.2450 region in the coming days, where it is likely to encounter temporary resistance.