USD/MYR Moves Through Channel Top, Malaysian Gov't Wary Of Fourth Virus Wave

Spot USD/MYR sits within Monday's range, last +10 pips at MYR4.0522. The rate moved higher yesterday, after the RSI's move above the 30 level (bullish signal), but failed to take out descending channel top. It attacked the channel top again this morning while erasing its opening losses, resulting from a moderation in risk aversion observed after hours on Monday.

• Star reported that Minister in the PM's Economy Dept Mustapa Mohamed told participants of a discussion on the Economic Prospects 2021 that "the government may need to inject additional funds to stabilise the country's economy should a fourth wave of Covid-19 occur." He added that "the available funds are from loans and there's no limit, but at the same time, it does have an effect on the country's fiscal deficit."
• On Monday, Malaysian MP Tengku Adnan from UMNO (which whose politicians sit on Malaysia's cabinet) was found guilty of graft and wouldn't be able to run for re-election should an election be called, albeit he may still appeal the sentence. The ruling came after the parliament passed the 2021 budget with a majority of two votes, signalling the fragility of PM Muhyiddin's command over the legislature.
• The rate is peeking above the channel top at MYR4.0491. Consolidation there would allow bulls to set their sights on Dec 7 high of MYR4.0885. Conversely, a break under Dec 18 low of MYR4.0310 would turn focus to the psychological MYR4.000 figure & channel floor at MYR3.9934.
• Malaysia's update on foreign reserve comes out later today, with domestic CPI due tomorrow.