USDMYR Technical Analysis

The US Dollar made a major bullish move against the Ringgit this Thursday and is now trading at 4.1920. The announcement of the ADP Nonfarm Employment Change data showed the creation of a large number of jobs in the US private sector (807k real vs 400k forecast). This has the potential to further accelerate the economic recovery in the US and accelerate the pace of withdrawing current financial stimulus. This also shows that the monetary policies adopted by the Fed have had a positive effect. From a macroeconomic perspective, the Non-Farm Payroll data, to be released on Friday, could confirm the creation of US jobs and give the USD even more strength against its counterparts. From a technical point of view, if the USDMYR manages to break above 4.1950, it could rise to 4.2450 in a few days.