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Ringgit Operates Near Cycle Lows, Palm Oil Recovers

MYR

Spot USD/MYR changes hands at MYR4.4532, up 17 figs on the day. Topside technical focus falls on MYR4.4585, a cyclical high printed on Jul 19. A break here would expose Jan 4, 2017 high of MYR4.5002. On the flip side, bears look for a descent towards the 50-DMA, which intersects at MYR4.4070.

  • Palm oil futures traded in Kuala Lumpur found poise Wednesday, climbing back towards the MYR4,000/MT mark. Some are suggesting that the recent decline in prices is attracting renewed demand. Meanwhile, Intertek data showed that Malaysia's palm oil shipments fell 9.60% M/M in the first 20 days of July, which still marks an improvement from the 13.73% M/M loss registered in the first 15 days of the month.
  • The next points of note on Malaysia's economic docket is the monthly CPI report, due for release on Friday. Headline inflation is expected to have quickened to +3.2% Y/Y in June from +2.8% prior.

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