Ringgit Slips In Catch-Up Move

Spot USD/MYR climbed to a new cyclical high (MYR4.4323) this morning as the space absorbed market impetus from over Malaysia's long weekend, which saw local financial markets shuttered.

• While Malaysia was off for a public holiday, market sentiment was weighed on by a combination of factors, including China COVID-19 worry & expectations of continued hawkish resolve from the Fed.
• The rate last sits +53 pips at MYR4.4315. Next resistance is at MYR4.4490, which capped gains on Mar 23, 2020. Conversely, bears seek losses past Jun 28/17 lows of MYR4.3958/45.
• The ADX is picking up again, after flirting with the weak trend threshold (25) earlier this month, as buying pressure returns.
• FinMin Zafrul was positive about the nation's potential to meet its 2022 economic growth target. He suggested that GDP may rise +5.3%-6.3% Y/Y this year amid continued strengthening in domestic demand.
• Meanwhile, Health Min Khairy warned that the BA.5 variant of Omicron is driving the recent upsurge in COVID-19 cases and urged high-risk individuals to get booster jabs.
• Malaysia's data docket is virtually empty during the remainder of this week.