USDMYR Technical Analysis

On a low volatility day in the markets, the US Dollar rose against the Ringgit and is now trading at 4.4560. The little up movement comes after the release of Initial Jobless Claims data, which came in slightly higher than expected (260k real against 259k forecast). This shows that the job market in the US remains strong, as 260k of Initial Jobless Claims is a very low number within the historical series. Still, a more accurate picture of the labour market will be seen on Friday with the release of the Non-Farm Payroll data. Job creation in the US is an important data because it shows how the economic health is going in the US and this can affect all global markets. From a technical point of view, if USDMYR breaks below 4.4500 it could drop to 4.3650. Investors also remain apprehensive due to the military exercises that Russia has been carrying out near the border with Taiwan.