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Ringgit Stabilises, Palm Oil Market Dynamics Under Scrutiny

MYR

Spot USD/MYR stabilises after an upswing to fresh cyclical highs on Tuesday, with residue impact of overnight greenback weakness helping drag the pair a tad lower this morning. When this is being typed, spot USD/MYR trades at MYR4.4370, down 17 pips on the day.

  • A dip through Jun 28/17 lows of MYR4.3958/45 would give some reprieve to bears. Meanwhile, a clearance of yesterday's high of MYR4.4402 would bring key resistance from Mar 23, 2020 high of MYR4.4490 into play.
  • The impact of Indonesia's decision to walk back on its temporary export controls was evident in the latest report from Malaysian Palm Oil Boar (MPOB). Data showed that palm oil shipments from the world's second largest producer of the edible oil slumped in June, driving inventories to their largest size since November as output rebounded. Still, stockpiles were smaller than predicted in a Bloomberg survey. Separate data from Intertek Testing Services showed that Malaysia's palm oil shipments extended decline in the first 10 days of this month, suggesting that renewed competition from Indonesia keeps limiting Malaysia's export potential.
  • There are no notable local data releases coming up during the remainder of this week.

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