Ringgit Extends Gains, Wider Bullish USD/MYR Momentum Eases
Spot USD/MYR extends its move away from cyclical highs, losing altitude for the third consecutive day. The rate last operates at MYR4.7295, down 63 pips on the day, with bears looking for a sell-off past Oct 27 low of MYR4.7028. A breach of that level would bring the 50-DMA (MYR4.6254) into view. Bulls keep an eye on Nov 4 high of MYR4.7495.
- Bearish divergence has developed in the RSI chart before the index fell below the 70 threshold, returning from overbought territory, suggesting that topside momentum is dissipating.
- Palm oil futures slipped Tuesday amid chatter of potential for a larger-than-expected increase in Malaysian stockpiles, with all eyes on Thursday's data from the Malaysian Palm Oil Board.
- Flash flood warnings have been issued in Kuala Lumpur, Selangor, Negri Sembilan, Kedah, Johor, Melaka, and Sarawak as campaigning for the November 19 general election went underway.
- Looking ahead, Malaysia's Q3 GDP & BoP current account balance will be out this Friday.