Ringgit Resilient On Return From Holiday, Digesting Snap Election Announcement

Spot USD/MYR operates +12 pips at MYR4.6515, close to the multi-decade high printed last Friday at MYR4.6538. Local financial markets were closed on Monday, but risk sentiment was negative during that time, which has failed to filter through into ringgit price action this morning.

• From a technical standpoint, a clearance of the MYR4.6538 level would shift bullish focus to the record high of MYR4.8850. A dip through Oct 6 low of MYR4.6270 would bring the 50-DMA (MYR4.5202) into view.
• Palm oil futures trading in Kuala Lumpur was closed on Monday, due to a public holiday there. The aggregate Bloomberg Commodity Index dropped nearly 1% amid risk-negative musings, which bodes ill for Malaysia's flagship export commodity after its seven-day pre-holiday rally, the longest winning streak in 19 months. Against this backdrop, high-frequency data from Intertek showed that Malaysia's palm oil shipments fell 13.4% M/M in the first 10 days of the month.
• PM Ismail Sabri called a snap election but the specific date is yet to be finalised by the Election Commission. The dissolution of parliament terminates the debate on Budget 2023 which was tabled last Friday.
• Malaysia's industrial output data (Wednesday) headlines the domestic economic docket this week.