USDMYR Technical Analysis

The US Dollar continues its bullish move against the Ringgit despite the weak economic schedule on Wednesday and is now trading at 4.6710. Investors seem to be waiting for the FOMC Meeting Minutes, which should provide guidance on the next steps in monetary policy adopted by the Federal Reserve (FED). The Producer Price Index (PPI) data scheduled to be released tomorrow may also help understand the US inflation situation. PPI measures inflation in the price of goods and services used by companies to produce their products. This inflation ends up reflecting in the final consumer price, so a higher reading in the PPI today, could end up causing a higher inflation in the Consumer Price Index (CPI) in 2 or 3 months. From a technical point of view, USDMYR is in an important resistance region and with signs of exhaustion on the part of buyers. A bearish pullback could start soon.