The Dollar gained some ground against Ringgit this Thursday and is now trading at 4.1600. As the market prepares for the beginning of the tapering process, scheduled for November, the US Dollar is already starting to show signs of strength. The Initial Jobless Claims data, to be released later, can give a good picture of the employment situation in the US, which is a major key to the next steps on the monetary policy for the coming months. The forecast is that 300k people have applied for jobless insurance last week. If that number comes in lower than expected, it has the potential to further strengthen the US Dollar. From a technical point of view, the USDMYR is sitting on a support region and the break above 4.1700 may pave the way for the USDMYR to rise to 4.2400.
The US Dollar hit its lowest price since June against the Chinese Yuan on Thursday and is now trading at 6.3936. From a fundamental standpoint, the Initial Jobless Claims data, to be released later, could boost the US Dollar if it comes lower than expected. From a technical point of view, the USDCNY is at an important area of support, as the current movement can be characterized as a double bottom formation. The price action formation of October 19th marked an important entry of selling pressure, which can be understood as exhaustion because it is proximity to an historical low in the chart. If the price manages to break above 6.4300, the USDCNY could enter an upward momentum and go to the 6.5100 level in a few days.
