The US dollar rose against the Ringgit and is now trading at 4.4850. The recent bullish move comes after the release of PMI data for the US, which brought one of the lowest readings since the beginning of the pandemic. Although this news would bring devaluation for the USD, the immediate effect was the opposite due to the increasing uncertainties around the US economy. The Services PMI was forecast to come in at 49.2, but the actual result was 44.1, adding great uncertainty about the health of the US economy. The New Home Sales data also came in much lower than expected (511k actual versus 575k forecast). From a technical point of view, USDMYR is testing the most important resistance region in recent years. A downside breakout of 4.4700 could make room for a broad downward move to 4.4000.
