USD/MYR Technical Analysis

The US Dollar fell on Friday against the Ringgit and is now trading at 4.1750. The Initial Jobless Claims data came in higher than expected (230k real against 200k forecast) and this may have been the cause of the devaluation of the USD against its counterparts. Producer Price Index (PPI) data for the month of December also came in slightly lower than expected (0.2% real versus 0.4% forecast). This indicator (PPI) is a leading indicator of consumer price inflation, which accounts for the majority of overall inflation and that’s another fact that made the USD to fall. From a technical point of view, the USDMYR is approaching an important support region on the daily chart at 4.1650, where it is likely to find some temporary support. If the price respects this level, it is likely to rise to the 4.2450 level in a few days.