USDMYR Technical Analysis

The US dollar was down 0.2% against the Ringgit on Thursday and is now trading at 4.4310. The downward movement is due to the release of US GDP data, which came in below expectations. The previous reading (for the third quarter) came in at 3.2%. Today the market expected the GDP reading for Q4 to come in at 2.9%, however the actual number came out at 2.7%. As this reading is lower than expected, this tends to be negative for the USD. The Initial Jobless Claims data came in slightly lower than expected (192k real vs 200k forecast) and this tends to be positive for the USD. However, as the Initial Jobless Claims news comes out every Thursday, this is a macroeconomic indicator that causes less impact on the market. So among the two news for the USD today (GDP and Initial Jobless Claims), the most important one was the GDP and that set the tone for the fall in the USDMYR. From a technical point of view, USDMYR just felt the bearish rejection of the resistance at 4.4400. If the price drops below 4.4200, USDMYR can fall to the 4.3600 and 4.3400 levels in a few days.