Ringgit to fluctuate between 3.9060 – 3.9265 versus USD today, says AmBank Research

-A +A

KUALA LUMPUR (Feb 28): AmBank Group Research expects the ringgit (MYR) to trade between its support level of S1: 3.9060 S2: 3.8999 while the resistance is pegged at R1: 3.9265 R2: 3.9302 versus the US dollar (USD).

In his AmBankFXDaily report today, AmBank group chief economist and head of research Anthony Dass said he noticed the MACD gap is narrowing but the relative strength index levelling off.

“Key focus for the day are January Malaysia inflation and Q4 US GDP second estimate,” he said.

Dass said the MYR softened 0.1% to 3.9080 against the USD partly due to stronger dollar.

“Besides, the crude oil prices namely WTI and Brent fell 1.6% to US$63.91/barrel and 1.5% to US$66.50/barrel respectively, ahead of Energy Information Administration's report on crude oil inventories today that will shed light on the growth rate of US oil production which slowed down in the previous week (consensus: 2.1M barrels).

“Downside to the MYR was limited by a 0.6% gain in KLCI to 1,871.46 with net foreign inflow of RM206.1 million.

“While the 5- and 7-year Malaysian Government Securities yields remained unchanged at 3.615% and 3.970%, the 10- fell 2 basis points to 4.035%.

“The MYR held firm against regional peers like Singapore dollar, gaining 0.02% to 2.9667, peso by 0.4% to 13.3554, baht by 0.5% to 8.0566, and rupiah by 0.03% to 3,500.26. The 5-year CDS fell 1.26% to 61.44,” he said.