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PM Muhyiddin Announces Nationwide MCO, Local GDP Data Eyed

MYR

Spot USD/MYR formed a golden cross Monday and firmed as trading got underway in Kuala Lumpur, reacting to yesterday's late-doors gains in the greenback & Malaysian gov't's decision to tighten nationwide Covid-19 restrictions. The rate last sits +47 pips at MYR4.1097.

  • A break above May 6 high of MYR4.1267 would please bulls, clearing the way to Apr 16 high of MYR4.1318. Conversely, a fall through May 10 low of MYR4.0970 would open up Apr 30 cycle low of MYR4.0877.
  • The gov't imposed a nationwide Movement Control Order (MCO) across the whole country days after announcing similar curbs in Selangor and Kuala Lumpur. The MCO takes effect on Wednesday and will last through Jun 7, as Malaysia is trying to contain the spread of fresh Covid-19 infections. PM Muhyiddin warned that "Malaysia is facing a third wave that could break into a national crisis."
  • Malaysia said it will halt the Reciprocal Green Lane Scheme with Singapore from May 13. Travellers from Singapore will have to use the One Stop Centre before entering Malaysia.
  • Malaysia is set to report Q1 BoP current account balance & GDP data today. Analysts surveyed by BBG see the economy shrinking 0.9% Y/Y, extending its 3.4% decline recorded in Q4.

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