The US dollar rose against the Ringgit this Wednesday after the release of the American Consumer Price Index data, which came higher than expected, causing the dollar to rise 0.35% in the morning with a small retracement by the end of the American session. The Ringgit continues to stumble against its major counterparts, and this is due to the challenges imposed by the new wave of Covid-19 and a rising inflation rate, around 4%, against negative inflation last year. From a technical point of view, the USDMYR has a new upward trend in place, which could bring the price to the 4.1500 level.
The US dollar has been rising against the Chinese Yuan this Thursday after the release of the Consumer Price Index (CPI) for the US economy, which came higher than expected, showing that US inflation is not a very far threat. Investors know that higher inflation for the US economy could mean anticipation in the rise of the interest rate for the Dollar, initially stated by the FED to happen only in September 2023. Investors will be looking for more signals about the US economy through the Initial Jobless Claims report to be released later today.
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From a technical point of view, the USDCNH just touched an important area of support at 6,4050 and is now traded at 6,4500. Should the Initial Jobless Claims come lower than expected it could mean a further rally for the US Dollar and it could reach 6,5800 in the next few days.
