HALISTER1: INSIDE MALAYSIA: Ringgit Slides Ahead of Factory Orders

INSIDE MALAYSIA: Ringgit Slides Ahead of Factory Orders

(Bloomberg) -- Ringgit falling for fifth day in past six amid broad dollar strength ahead of Sept. FOMC meeting minutes.
  • Ringgit falls 0.4% to 4.1905 per dollar, weakest since March
  • USD/MYR above 200-DMA; slow stochastics %K at 92, in overextended territory
    • Resistance: 4.2350, Feb. 29 high; 4.2467, Feb. 24 high; 4.2808, Jan. 26 low
    • Support: 4.0913, 200-DMA; 4.0760, 50-DMA; 4.0677, 100- DMA
  • August industrial production probably rose 5.4% y/y vs 4.1% in July, according to median estimate in Bloomberg survey; data due at noon
  • USD/MYR to edge down toward 3.90 by year-end, as recovering oil prices should see trade surplus widening, CBA Asian currency strategist Andy Ji wrote in note yday
    • AUD/MYR to edge lower toward 2.85 by year end, as narrower Australia-Malaysia real policy rate differentials should see a lower cross
    • BNM could have more scope to ease policy given outlook for CPI remains soft; deteriorating macroeconomic backdrop and festering 1MDB fiasco should continue to weigh on MYR
  • Yield of 3.9% govt bond due Nov 2026 rose 3 bps yday to 3.609%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Andy Ji (Commonwealth Bank of Australia)

To de-activate this alert, click here

UUID: 7947283