MYR Soars With Asia EM Peers, Malaysian GDP Growth Expected To Have Quickened In Q3

Spot USD/MYR has sold off sharply after the release of U.S. CPI figures overnight showed larger-than-expected moderation in inflationary pressures, prompting participants to pare Fed rate-hike bets. The rate last deals at MYR4.6473, down 505 pips on the day, hovering just above its 50-DMA. A break below MYR4.6324, where that moving average intersects today, would support the case for a deeper bearish reversal. Bulls look for a rebound towards Nov 4 high of MYR4.7495.

• Palm oil futures for January delivery slipped after a volatile session Thursday as Malaysian stockpiles of the tropical oil reached the highest level in three years, despite missing forecasts on the back of a sharp decline in imports and a marginal miss in output growth. The contract ground higher in after-hours trade, as focus turned to high-frequency data on Malaysian palm oil exports during the first 10 days of the month (AmSpec +12.7% M/M; Intertek +33.12% M/M; SGS +13.1% M/M) and Indonesia's decision to raise its CPO reference price for the second half of the month, which may give Malaysia some edge over the rival producer.
• All eyes are on Malaysia's Q3 GDP and BoP current account balance. The economy may have grown 12.5% Y/Y, according to a Bloomberg survey of analysts. Current account surplus is expected to have widened to MYR9.6bn.