The Dollar remained weak against the Ringgit this Friday and is now trading at 4.1460. Malaysia’s unemployment data came in line with expectations and remained at 4.8%, the same level as the previous reading. Considering that the August reading came in slightly higher than expected, the market interpreted the September reading favourably and this favoured Ringgit. The interest rate, as expected by the market, also remained unchanged on Thursday (at 1.75%). This scenario of stability favoured the Ringgit, which is among the currencies that appreciated the most against the Dollar since the beginning of September. From a technical point of view, USDMYR may find support around 4.1200, where some buying pressure may appear.
The US Dollar remained sideways against the Chinese Yuan this Friday and is now trading at 6.4514. The Consumer Price Index data for China brought numbers slightly lower than expected, which tends to be negative for the CNY. From a political point of view, China was sought out by the Taliban in an attempt to strengthen ties with the Asian country. This approach is seen with scepticism on the part of investors and, if that happens, it has the power to devalue the CNY. From a technical point of view, if the USDCNY manages to break above the 6.4800 level, it could rise to 6.5750 in a few days.
