Malaysia Vows To Continue Providing Subsidies To Curb Inflation

Spot USD/MYR changes hands at MYR4.4045, down 40 pips on the day, still holding a familiar range.

• From a technical perspective, bears need a dip through Jun 17 low of MYR4.3945 before taking aim at May 31 low of MYR4.3643. Conversely, a rebound above Jun 14 high of MYR4.4255 would fuel hopes for the resumption of the uptrend.
• FinMin Zafrul said consumer inflation could have printed at +11.4% Y/Y without government subsidies (the actual print was +2.8%). Zafrul vowed to continue to provide relief measures to "shield consumers from the rising cost of living." His pledge was echoed by Annuar Musa, who chairs the newly formed government task force on inflation.
• Palm oil futures may record their first weekly gain after three consecutive weeks of losses. The assessment of the outlook for production and shipments by top two producers continued to affect price action.
• Malaysia's S&P Global M'fing PMI will be published later today.
• Looking further afield, Bank Negara Malaysia will announce its next monetary policy decision next Wednesday.