MYR/CNH Technical Analysis

The Ringgit has been weakening against the Chinese Yuan in the last few days and it already accumulated 1.3% of devaluation since the beginning of May. This happens amid increasing numbers of infections by the Covid-19 and traveling restrictions imposed by the Malaysian Government to travellers coming from the US and United Kingdom (to name a few). Malaysia has also seen some increase in the inflation, which jumped from 0.1% in March to 1.7% in April (annualized value). Investors must pay attention to the Malaysian GPD, due later. Should the Malaysian GDP data come below expectations, we could see a tumble in the Ringgit, which is still under pressure from the slow recovery due to the delayed rollout of the vaccines.