Ringgit Close To Neutral Levels, Trade Data Due
Spot USD/MYR changes hands at MYR4.5455, barely above neutral levels. The rate pierced the 100-DMA (today at MYR4.5441) in the last two days and a clean break would open up the MYR4.50 mark. Conversely, bulls look for a rebound above the 50-DMA, which kicks in at MYR4.6375.
- The RSI has moved into oversold territory, suggesting that the recent pullback from multi-year highs might be overextended.
- Palm oil futures for January delivery fell for the third consecutive day Wednesday, extending losses in after-hours trade before finding support in the 50-DMA. Ringgit appreciation and weaker prices of rival soyoil applied some pressure to palm oil.
- Malaysia's trade surplus may have moderated to MYR29.85bn in October, according to economists surveyed by Bloomberg. Trade surplus reached an all-time high of MYR31.71bn in September on the back of strong manufacturing and mining exports.
- Recent opinion polls showed the main opposition Pakatan Harapan bloc taking the lead over PM Ismail Sabri's Barisan Nasional. Still, the fragmentation of Malaysia's political scene and the idiosyncracies of its electoral system obstruct reliable electoral forecasting.