Ringgit Loses Ground, Malaysian Trade Report Eyed

Spot USD/MYR has inched higher this morning, as overnight demand for the greenback has lent support to the pair, while any potential spill-over from yesterday's rally in palm oil prices has seemingly already been digested. The rate last sits at MYR4.1015, 45 pips higher on the day, which comes after four straight days of losses.

• Malaysia left existing curbs on interstate travel in place, extended the CMCO in Kuala Lumpur, Selangor, Sarawak, Johor and Penang through May 17 and decided to raise the level of restrictions in Sabah to CMCO from the lowest RMCO from Apr 29. Sabah's Local Gov't and Housing Min said that inter-district travel will still be allowed, based on a system of zones.
• Tuesday brought another strong session for crude palm oil, with futures piercing MYR4,000 in Kuala Lumpur during their largest daily surge in almost a year.
• Malaysia's trade report takes focus on the data front today. Trade surplus is expected to widen to MYR18.20bn from MYR17.90bn, with both imports and exports forecast to rise at a faster pace than the prior month (per BBG survey).
• A recovery of the 200-DMA/Apr 21 high at MYR4.1209/4.1225 would please bulls, opening up Apr 16 high of MYR4.1318. Conversely, a slide through yesterday's trough at MYR4.0945 would bring the 100-DMA at MYR4.0764 into view.