USDMYR Technical Analysis

The US Dollar continued to decline against the Ringgit on Friday and is now trading at 4.4000. The recent downward movement can be explained from the release of the US Core PCE Price Index, which measures the changes in the price of goods and services purchased by consumers for the purpose of consumption, excluding food and energy. So, it is a keyway to measure changes in purchasing trends and inflation. The reading came in at 0.2% against the 0.3% forecast. As the reading came in lower than expected, investors understood that inflation in the US may be milder than expected and therefore the Federal Reserve (FED) may adopt a more dovish positioning about the monetary policy. This could send the USD lower, as it actually accelerated the downward movement in the USDMYR. From a technical point of view, USDMYR has just broken an important support region at 4.4430 and the next support point is at 4.3000.