KUALA LUMPUR (April 5): AmBank Group Research expects the ringgit (MYR) to trade between its support level of S1: 3.8589 and S2: 3.8562 while the resistance level is capped at R1: 3.8711 and R2: 3.8785 supported by narrowing MACD gap.

In his AMBankFXDaily note today, AmBank group chief economist and head of research Dr Anthony Dass said the relative strength index levels was seen climbing up faster.

Dass said the MYR eased 0.09% to 3.8693 against the US Dollar dragged by the FBM KLCI which fell 1.9% to 1,815.94 with net foreign funds outflow worth RM90.1 milllion, plus the 5- and 7-year Malaysian Government Securities yield rose 0.5 basis points (bps) and 1.0bps to 3.560% and 3.840% respectively while the 10-year fell 1.0bps to 3.945%.

“But crude oil i.e. WTI and Brent inched higher 0.02% to US$63.52/barrel and 0.1% to US$68.21/barrel respectively following higher US oil inventories at 4.6 million barrels for the week ending 30th March versus market expectation of 1.4 million gain.

“The MYR lost ground against regional peers like rupiah by 0.1% to 3,557.67, and baht by 0.01% to 8.0659, but held firm against Singapore dollar by 0.2% to 2.9450, and peso by a margin of 0.001% to 13.4664. The 5 year CDS rose 0.01% to 73.18,” he said.