USDMYR Technical Analysis

The US Dollar was down -0.16% against the Ringgit on Monday and is now trading at 4.4190. Despite the downward movement, the USDMYR is in a sideways situation, as it failed to break either the high or the low of the 23rd of March. The sentiment of indecision is due to a weak macroeconomic agenda for both USD and MYR. The market also appears to be awaiting the release of US CB Consumer Confidence data, which measures the level of consumer confidence in economic activity. It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. As this indicator has been showing lower and lower levels since June 2021, the market should pay special attention to this number. Another element that makes this indicator important is that it has a direct impact on inflation and therefore can guide US monetary policy in the coming months. From a technical point of view, as USDMYR managed to break below 4.4650, the next stop point appears to be the 4.3650 region.