The US Dollar was up +0.22% against the Ringgit on Tuesday and is now trading at 4.5170. Despite the bullish move, the main market sentiment is one of indecision as the rise was relatively small compared to yesterday’s -1.01% drop. The release of US ISM Manufacturing PMI data for the month of July came in slightly lower than expected (46.4 real against 46.8 forecast), but as the difference between expectation and reality was small, this was not enough to cause a drop at USDMYR. Investors are awaiting the release of the ADP Nonfarm Employment data tomorrow. The ADP measures private sector job creation and is seen as a preview of the Nonfarm Payroll, due to be released on Friday. From a technical point of view USDMYR is in a support region and close to the 200-period average on the daily chart. The price has also shown the formation of a double bottom in the 4.5150 region, which might open up room for an upward move in the coming days. If the price manages to break above 4.5550 it can move up to 4.6100 in a few days. On the other hand if the price manages to break below 4.5000, it can drop as low as 4.4350.
