On a day of considerable indecision, USDMYR falls just -0.04% and is now trading at 4.7270. The sentiment of indecision is due to a weak macroeconomic agenda for this Tuesday. Another element that adds indecision to the market is that the unemployment rate in Malaysia came in at 3.4%, as expected. In general, when news presents numbers that are in line with expectations, this tends to cause low volatility in the market. Just for comparison, the unemployment rate in the US is 3.8% right now.
Investors should pay attention to the Producer Price Index (PPI) data to be released tomorrow. The PPI measures the variation in the price of goods, products and services to the producer and is an indicator of inflation at the beginning of the production chain. If the PPI comes higher than the forecast, this could make the US Dollar appreciate further against the Ringgit in the coming days. From a technical point of view, considering that the USDMYR managed to break above the resistance region on the daily chart, it is possible that the price will continue to rise towards the all-time high at 4.7475.
