Ringgit Flatlines Around MYR4.4000

Spot USD/MYR continues to hold a narrow range, last sits +35 pips at MYR4.4005, with the ADX easing off further to 28.8 this morning. From a technical perspective, the key bullish target remains at MYR4.4255, which capped gains on Jun 14 marking a cyclical high. Bears look for a sell-off past Jun 17 low of MYR4.3945 before setting their sights on May 31 low of MYR4.3643.

• PM Ismail Sabri announced that the government will consider reducing or exempting tax on the agro-food industry as the Cabinet is exploring ways to secure adequate food prices and supply.
• Malaysia's small palm oil producers are also asking for regulatory intervention. The National Association of Smallholders Malaysia (NASH) has complained that some palm oil mills have stopped buying fresh fruit from smallholders, even as they keep buying output from big producers, exacerbating problems stemming from labour shortages and soaring costs of farming materials.
• Palm oil futures traded in Kuala Lumpur trimmed their earlier gains Tuesday, as participants weighed relaxation of some COVID-19 countermeasures in China against broader risk aversion elsewhere.
• Worth flagging in advance that Bank Negara Malaysia will deliver its monetary policy decision in one week's time.