Khairy Suggests Gov't Will Announce Big Economic Aid Package

Spot USD/MYR retreated from a fresh cycle high on Thursday, but has regained poise this morning. The rate last sits at MYR4.1602, 7 pips better off on the day. A rally above Jun 24 high of MYR4.1710 would bring Nov 4, 2020 high of MYR4.1745 into play. Bears need a fall through Jun 18 low of MYR4.1360, before targeting the 50-DMA at MYR4.1259.

• Late doors on Thursday, Malaysia's Science Min & vaccine czar Khairy suggested that the gov't will announce a big economic relief package soon, but didn't delve into the details, as he refused to "pre-empt the [Prime Minister's] announcement".
• Federal Territories Min Annuar said that the gov't is confident of meeting the target of vaccinating 89% of people in Kuala Lumpur and Putrajaya in August. More than half of residents of both cities have already received their first jab.
• Meanwhile, health officials said that they are not planning to relax border controls, which means that travellers from most countries will continue to be required to isolate for at least two weeks after arrival.
• Malaysia's latest CPI report will be published today. Consumer price growth is expected to register at +4.7% Y/Y, steady from the prior reading, according to BBG consensus forecast. Looking further afield, focus turns to trade balance & Markit M'fing PMI, due next Monday & Thursday respectively.