USDMYR Technical Analysis

The US Dollar moved up 0.17% against the Ringgit this Monday and is now trading at 4.210. The recent bullish move is in part because of the US employment data released last week, which brought in a better-than-expected reading. Since the beginning of the pandemic, the Fed has repeated that one of its objectives was to bring the labour market situation back to pre-pandemic levels. As of March 2020, the US unemployment rate was 3.5%. The Non-Farm Payroll data released on Friday brought the unemployment rate to a reading of 3.6%. This makes it clear to the market that the Fed has already achieved one of its objectives, which was to seek full employment. The next step will likely be to contain the rampant increase in US inflation, the highest in 40 years. As the market approaches the next FED meeting, the USD may end up gaining more strength against its counterparts. From a technical point of view, as USDMYR managed to break above 4.2130, it has a chance to move up to 4.2450 in the next few days.