The Dollar closed with a small fall against Ringgit this Tuesday, and it is now traded at 4.1540. Although the U.S. ISM Non-Manufacturing Purchasing Managers Index (PMI) brought a number well below market expectations, the movement was not so great. Throughout this week, investors will keep an eye on the FOMC Meeting Minutes, which may give clues to the future of US interest rate and monetary policy. With new cases rising again in Malaysia, it is possible that the local authorities will impose more restrictions on the movement of people and the entry of tourists into the country, which could cause Ringgit to resume its depreciation against the dollar. The vaccination process is also developing slower than expected and this is another concerning factor for the market. From a technical point of view, if the USDMYR breaks below the 4.1500 level, there is a good chance the price will drop to 4.1100.
The US Dollar has gained some ground against the Singapore Dollar this Tuesday after the release of the U.S. ISM Non-Manufacturing Purchasing Managers Index (PMI). The PMI is a leading indicator because it brings an accurate view of the economic activity through the vision of the companies. This indicator has been showing consistent high readings, above 60 and it is natural that at some the reading would come lower than expected. Singapore has already vaccinated more than 60% of its population and is now moving to fully reopen its borders and economy, which could bring more value to the Singapore Dollar in the short term. From a technical point of view, if the price breaks above the 1.3500, it could go to the 1.3700 in a few weeks.
