USD/MYR Technical Analysis

The US Dollar gained some ground against the Ringgit this Wednesday and is now trading at 4.2300. Data from the Producer Price Index (PPI) brought a higher-than-expected reading for the Dollar (0.8% real against 0.5% forecast), which caused the USD to appreciate against its counterparts and against the Ringgit. The PPI measures inflation through the Offer perspective, as it measures the variation in the price of raw material used by producers. This inflation ends up being passed on to consumers. This PPI reading reaffirms the inflation situation in the US, which should serve as additional data for US monetary policy in 2022. From a technical point of view, if the USDMYR manages to break above 4.2400, it could rise up to 4.2900 in a few days.