USD/MYR has extended yesterday's gains...>

DOLLAR-MYR: USD/MYR has extended yesterday's gains further beyond its 200-DMA

(MYR4.1529) and printed a fresh two-month high as it hit the ceiling from the

61.8% retracement of the Sep 3 - Jan 20 sell-off (MYR4.1616). When this is being

written, USD/MYR trades +60 pips at MYR4.1595. A break above MYR4.1616 would

allow bulls to set their sights on the Dec 9, 10 & 11 highs at MYR4.1565.

Conversely, a pullback below the 200-DMA would draw bearish attention to the

100-DMA, which kicks in at MYR4.1429.

- The Covid-19 epidemic continues to dominate news flow, with Chinese figures

ticking ever higher & South Korea confirming 15 new cases. A softer than

expected PBoC yuan fix may have also weighed on MYR somewhat.

- Across the Strait of Johor, Singapore yesterday unveiled its FY2020 budget

containing a sizeable stimulus package designed in response to the coronavirus

challenge. Before the document was presented, Malaysian Dep Trade Min suggested

that increased fiscal spending in Singapore would prepare the market for looser

fiscal policy across the whole region.

- The focus turns to the local CPI report, due Friday.