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50-DMA Still Provides a Ceiling

MYR

USD/MYR remains capped by the 50-DMA and last sits -10 pips at MYR4.0420. A break above that moving average, last at MYR4.0438, would expose Feb 10 high of MYR4.0680. Conversely, a fall through Feb 16 low of MYR4.0260 would allow bears to set their sights on Jan 4 cycle low of MYR3.9957.

  • Malaysian Defence Min Ismail Sabri clarified the gov't's policy on inter-district travel ban, noting that it refers to administrative borders rather than police districts.
  • Science, Technology and Innovation Min Khairy said that the second batch of the Pfizer/BioNTech Covid-19 vaccine is expected to arrive today and will be distributed among states which haven't received the jabs yet.
  • BBG commented that the recent expansion in Malaysia's foreign reserves could be a sign that BNM has been trying to reign in rupiah appreciation.
  • The local docket is headlined by CPI data today, with trade balance coming up on Friday.

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