USDMYR Technical Analysis

The Dollar was down against Ringgit for the third straight day and is now trading at 4.2100. The Dollar resumed its downward movement against almost all of its counterparts after one of the Fed’s presidents said he saw the need to maintain financial stimulus for a while longer until the economic situation stabilizes. This increased the risk appetite among investors, who began to look for less secure assets like equities and sell US Dollars in the process. On Wednesday, Malaysia’s most anticipated macroeconomic indicator is the Consumer Price Index, which measures inflation. If CPI comes higher than expected, it could cause interest rates to rise and make Ringgit earn even more value against the Dollar. On Thursday, GDP for the US will bring more data on US economic health. From a technical point of view, the USDMYR could drop to 4.1750, where it will find some temporary support.