USD/MYR Falters After Rejecting 50-DMA, Gov't Tweaks Lockdown Strategy

The 50-DMA continues to keep a lid on USD/MYR and the rate has turned its tail after rejecting the moving average again. Spot USD/MYR last changes hands -48 pips at MYR4.0468, with the greenback showing a degree of weakness.

• Malaysian PM Muhyiddin is preparing for a trip across the border, with an in-person meeting with his Indonesian counterpart Widodo scheduled for Friday. It will be Muhyiddin's first official visit to Indonesia.
• A source piece circulated by the Straits Times confirmed that "more sectors of Malaysia's economy will be reopened during the movement control order (MCO) extension" amid a U-turn in the government's strategy. An unnamed official told the newspaper that "instead of listing those [businesses] that can operate, we are listing those that can't."
• Below Jan 21/29 lows of MYR4.0290/85 would allow bears to set their sights on Jan 4 cycle low of MYR3.9957. Bulls need a clearance of the aforementioned 50-DMA at MYR4.0513 before taking aim at Jan 12 high of MYR4.0760.
• Malaysia's economic docket is empty during the remainder of this week, with focus turning to next week's industrial output & GDP.