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Malaysian CPI Narrowly Misses Estimates, USD/MYR Nears 200-DMA

MYR

Spot USD/MYR has crept higher this morning and last changes hands +35 pips at MYR4.1357, trading through Wednesday's high and narrowing in on the nearby 200-DMA. The rate has played catch-up with yesterday's greenback appreciation.

  • Health Min Adham sought to soothe the nerves re: AstraZeneca vaccine and said that the jab is safe for use. AstraZeneca reps met with National Pharmaceutical Regulatory Agency officials last week.
  • Malaysian CPI missed the +0.2% Y/Y consensus forecast in Feb. The headline metric improved to +0.1% from -0.2% seen in Jan. Core inflation printed at +0.7% Y/Y.
  • Comments from veteran analyst Doran Mistry have gained some broader traction, he warned that palm oil will "fall dramatically" in Jul-Aug on the back of recovery in yields and better weather conditions.
  • A break above the aforementioned 200-DMA, intersecting at MYR4.1386, would allow bulls to target Nov 4 high of MYR4.1745. Bears would be pleased by a slide through Mar 18 low of MYR4.1020.
  • The local economic docket is empty during the remainder of this week. Watchers of Malaysian politics are reminded that Umno holds its general assembly meeting this weekend.

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