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Initial Ringgit Strength Moderates, Inflation Data Up This Week

MYR

Spot USD/MYR nosedived after the re-open despite the apparent absence of notable domestic catalysts. Early price action may reflect the dialling back of hawkish Fed tightening bets seen after hours Friday. That said, the rate has quickly recouped most losses to last trade -28 pips at MYR4.4465.

  • From a technical perspective, bears look for losses towards the 50-DMA, which intersects at MYR4.4018. Bulls need a break above Jul 15 high of MYR4.4513 before taking aim at Mar 10, 2017 high of MYR4.4618.
  • As flagged earlier, the Dewan Rakyat reconvenes today. Lawmakers will discuss the rising cost of living and are expected to table the much awaited anti-party hopping bill.
  • On the data front, Malaysia's monthly trade report will be published on Wednesday. The impact of resumed palm oil exports from Indonesia on Malaysian shipments may provide some interest.
  • On Friday, the Dept of Statistics will release the latest CPI figures. Headline inflation is expected to have grown 3.3% Y/Y in June, exceeding the +2.8% recorded in May.

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