The US dollar continued its bullish move against the Ringgit on Monday and is now trading at 4.5460, marking what appears to be a breakout of resistance region on the daily chart at 4.5250. The USDMYR has already accumulated a 3.73% increase since April 14th. From a technical point of view, USDMYR has just broken the 200-period Moving Average, marking the possible end of the downtrend that was happening since December 2, 2022. From a macroeconomic point of view, investors may be waiting for the release of the US Building Permits data, which measures the change in the number of new building permits issued by the government. Building Permits are seen as a way of anticipating the demand for goods, products and services, since after the construction release and over the next few months, the builder will need to buy construction materials and hire labour to carry out the work. This is therefore a way of understanding future inflation, as the Building Permits give an idea of how the civil construction sector in the US is doing.
