Palm Oil Futures Drop, Malaysia's Industrial Output In Focus

Spot USD/MYR trimmed some of its weekly loss Thursday, as the ringgit was among the worst performers in the region. The rate trades at MYR4.1190 as trading resume in Kuala Lumpur, 20 pips lower on the day.

• Ex-PM Mahathir said that he proposed forming a National Operations Council, an emergency administrative body also known as Mageran, during his Thursday's audience with the King. UMNO pushed back against the idea, adding that they wand the nationwide state of emergency lifted by Aug 1.
• Palm oil futures in Kuala Lumpur extended losses to a multi-week low Thursday, as the latest data from the Malaysian Palm Oil Board showed a surprise drop in exports, which overshadowed a smaller than expected increase in stockpiles. The active contract appeared to be completing a double top formation, with losses limited by the 50-DMA.
• Malaysia's Department of Statistics will release industrial output later today. Industrial production rose 9.3% Y/Y in March and is estimated to have grown 47.9% Y/Y in April, according to BBG consensus forecast.
• From a technical perspective, bears keep an eye on yesterday's low of MYR4.1145, its lowest point since May 12. Below there opens the 200-DMA, which intersects at MYR4.1062. Bulls look for a jump above Jun 4 high of MYR4.1330, which would open up May 31 high of MYR4.1480.