USD/MYR Rallies Through 200-DMA, Umno's General Assembly To Provide Interest

Spot USD/MYR crossed above its 200-DMA yesterday after that moving average had been intact since early Aug 2020. The pair holds a very tight range this morning and last trades +30 pips at MYR4.1493, after moving through yesterday's high.

• A breach of the nearby MYR4.1500 figure would clear the way to Nov 4 high of MYR4.1745. Conversely, a retreat under the 200-DMA at MYR4.1380 would shift bearish focus to Mar 18 low of MYR4.1020.
• The gov't noted that relatively low take-up of Covid-19 vaccines means that Malaysia will expand coverage with its National Covid-19 Immunisation Programme to more social groups in the second phase of the scheme.
• Director-General of Health Noor Hisham urged Malaysians to show "strong social responsibility" as the country's R rate rose to 1.0.
• Malaysia's Election Commissioner said that the registration of 18-year olds and automatic registration will be feasible only after Sep 1, 2022. The next general election is scheduled for 2023, but a snap election before then cannot be ruled out after PM Muhyiddin pledged to call one once the pandemic abates. A group of opposition MPs demanded PM Muhyiddin's resignation in the wake of the Election Commission's announcement.
• As a reminder, Malaysia's largest party Umno holds its general assembly this weekend. The meeting is expected to shed light on the party's further political direction ahead of the next general election.
• Next week, focus in Malaysia moves to trade balance, due Monday, and Markit M'fing PMI, due Thursday.