The Dollar has made a significant up movement against the Ringgit this Tuesday due to the release of the Consumer Confidence for the US, which came higher than expected and measures the level of confidence from the families’ spending in the US. As this is a leading indicator for the demand of goods and services, the market reacted quickly, and pushed the Dollar to the upside. On Wednesday, investors will pay close attention to the ADP Non-Farm Employment Change, where a higher-than-expected reading should be taken as positive to the US Dollar. Should this number come much higher than expected, the USDMYR could break above the 4.1660 and go for the 4.1750 level. If this number comes lower than expected, the fall is likely to continue to the 4.1250 level.
The US Dollar has been sideways against the Singapore Dollar since last week due to lack of any important macroeconomic event from both economies. This Wednesday investors are looking for the ADP Non-Farm Employment Change for the month of June, where a higher-than-expected reading could bring more strength to the US Dollar and make it resume the previous established uptrend. This week’s most important data is the Non-Farm Payroll, due on Friday. If the price breaks above the 1.3470, it could go to the 1.3670 level in 2 to 3 weeks. On the other hand, if the numbers for the ADP Non-Farm Employment Change comes lower than expected, it could drive the price back to the 1.3200 level.
