Geopolitics Generate Sino-Malaysian Tension, Melaka Gov't Collapses

Spot USD/MYR operates -15 pips at MYR4.1730, holding yesterday's range. Bears need a fall through Sep 15 low of MYR4.1572 before taking aim at Sep 10 low of MYR4.1300. Conversely, a jump above the 50-DMA/Sep 30 high at MYR4.1969/4.1970 would bring Aug 18 high of MYR4.2450 into view.

• Health Min Khairy tweeted on Monday that Malaysia will allow the mixing of different Covid-19 vaccines for booster dose recipients, following a recommendation based on studies into the safety of this approach.
• Malaysia summoned Beijing's ambassador on Monday to protest against the incursions of Chinese vessels into the disputed waters of the South China Sea off the coast of Sabah and Sarawak. China's controversial activity in the South China Sea has generated tension with a number of Southeast Asian nations over the recent months.
• The regional administration in the state of Melaka collapsed after four lawmakers withdrew support for Chief Min Sulaiman Md Ali. The Star cited sources noting that Sulaiman has already asked Melaka Governor to dissolve the legislature. UMNO leader Zahid yesterday called for a snap election to break the impasse, while Malaysiakini sources suggested that former Melaka Chief Min Idris might seek a comeback.
• Looking ahead, BNM Gov Nor Shamsiah Mohd Yunus will appear alongside a number of fellow central bank chiefs at a BIS panel titled "Big tech and data in finance" on Friday.