The US Dollar registered a small increase of +0.04% against the Ringgit this Tuesday and is now trading at 4.6750. The upward movement takes place on a day of low market volatility due to expectations regarding the release of Consumer Price Index (CPI) data for the USD tomorrow. The CPI measures the change in the price of goods, products and services sold in the economy and is the main way of measuring inflation. Since July 2022, CPI readings have been increasingly lower, signalling that the economic restriction measures adopted by the Federal Reserve (FED) are having the desired effect. However, the last reading, on August 10th, was already higher than the July reading and the market expectation is that tomorrow’s reading will be higher than the August reading. If this indeed happens, the US economy could be entering a new phase of inflation, which could end up forcing the FED to increase the interest rate for the USD, which could cause the USDMYR to rise. From a technical point of view, USDMYR is in an important resistance region on the daily chart and an upward movement will only be confirmed if the price manages to break above the 4.6850 level. Investors should pay attention to the CPI release tomorrow, which could cause great volatility in the market.
USDMYR Technical Analysis
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