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Ringgit Fails To Find Support In Firmer Palm Oil, Budget & Politics Take Focus

MYR

Spot USD/MYR shot higher as trading re-opened in Kuala Lumpur, absorbing the overnight impetus generated by hawkish Fedspeak and general risk aversion. Locally, budget/election matters remain front and centre.

  • The rate last deals +75 pips at MYR4.6450, with the trend needle pointing north. If bulls manage to get resistance from Oct 3 high of MYR4.6520 out of their way, they will target the all-time peak at MYR4.8850. Bears need a retreat under the 50-DMA at MYR4.5161 to get some reprieve.
  • Palm oil futures rose for the sixth straight day on Thursday, extending gains in after-hours trade, its longest winning streak since February. The tropical oil remains supported by firmer prices of its closest substitutes, with discounts to gasoil and soyoil sitting near record wides. Keeping palm oil prices in check are bloated storage tanks in Malaysia and Indonesia, with the latest data from Intertek pointing to a 37.7% M/M slump in Malaysian exports in the first 5 days of the month.
  • All eyes are on Budget 2023 to be delivered in parliament this afternoon amid speculation that PM Ismail Sabri could dissolve the federal assembly shortly thereafter. His royal audience yesterday brought little clarity on the matter.

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