The US Dollar is up +0.28% against the Ringgit on Tuesday and is now trading at 4.6380. The upward movement comes after the release of US Building Permits data, which came in higher than expected (1,491M real against 1,425M forecast). Building Permits measures the change in the number of new building permits issued by the government, and it is a key indicator of demand in the housing market and therefore inflation. The bullish move also marks the start of a possible breakout of the 4.6350 resistance region, which could make the USDMYR move higher towards the 4.7100 region in a few days. From a technical point of view, USDMYR is breaking out of an ascending triangle formation, which is a continuation pattern on the daily chart. Investors should pay attention to the Federal Reserve (FED) chairman’s speech tomorrow, which may give a direction for the next few days for USDMYR.
