USD/MYR Holds Monday's Range After Aid Package Announcement

Spot USD/MYR has edged lower and last deals -40 pips at MYR4.0480, as yesterday's greenback strength has dissipated. The rate remains trapped within yesterday's range in the absence of any major catalysts.

• A fall through Jan 15 low of MYR4.0325 would clear the way to Jan 8 low of MYR4.0285. On the flip side, gains past the 50-DMA at MYR4.0648 would open up Jan 12 high of MYR4.0760.
• On Monday, Malaysian MP Muhyiddin unveiled a MYR15bn "Permai" stimulus package to shore up the economy after the re-imposition of movement control order (MCO). Muhyiddin added that private hospitals have agreed to take up Covid-19 patients treated in public facilities which are nearing capacity.
• On the political front, UMNO decided to go ahead with party elections this year and will fix an "appropriate date" at some point in 2021.
• Thursday's monetary policy decision from BNM is set to be a nail-biter after the reinstatement of movement restrictions in Malaysia delivered a blow to the country's economic recovery prospects. Analysts are virtually evenly split as to whether BNM will cut the OPR by 25bp or leave it unch.
• On the data front, focus moves to Friday's CPI report for the month of December.