USDMYR Technical Analysis

The US Dollar rose +0.15% against the Ringgit this Tuesday and is now trading at 4.7220. The movement comes after the release of data from the U.S. JOLTs Job Openings, which came in well above expectations (9.61M actual against 8.8M forecast). This indicator measures the number of jobs that are currently open in the US and as the reading was almost 1 million higher than expected, investors understand that there is a strong demand for labour in the US at the moment. If there are so many jobs open, it is natural to imagine that the unemployment rate will decrease in the short term. More people employed means more people with purchasing power to buy goods, products, and services and this tends to increase inflation. As the most commonly used measure to contain inflation is the interest rate, investors therefore understand that a more heated economy could force the Federal Reserve (FED) to raise interest rates in the next meetings and that is why the USD appreciates against the MYR. From a technical point of view, considering that USDMYR managed to break above the resistance region on the daily chart at 4.6800, it is possible that the price could rise to the all-time high at 4.7475 in a few days.