Ringgit edges higher as trade tensions cool

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KUALA LUMPUR (Dec 13): Malaysia’s ringgit ekes out a small gain as risk appetite increases amid signs US-China trade relations are improving.

* USD/MYR drops 0.1% to 4.1820, set for first decline since Dec 4

** Support 4.1366, 4.1227, 4.0900; resistance 4.2020, 4.2437, 4.2531

* EM Asia FX investors will probably be wary about taking on fresh positions in the near term, given risks to the global trade outlook, says Mitul Kotecha, emerging markets strategist at TD Securities in Singapore

** Markets will lack clear direction until there’s further clarity on trade, while declining liquidity may exacerbate price swings heading into year-end

* Malaysia’s 10-year bond yield climbed 1bp Wednesday to 4.10%

* Auction of RM3.3 billion of 2022 Islamic bonds closes at 11.30am local time

* Malaysia’s GDP is expected to grow 4%-5% in 2019, with domestic demand the main driver, while US tariffs on China imports will have a negative impact, IMF says in statement

* Malaysia is “well on its way” to becoming a high-income and developed nation in the coming years, World Bank VP for East Asia and Pacific Victoria Kwakwa said Wednesday