Ringgit to move in range of 3.8800 – 3.8914 against USD today, says Ambank Research

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KUALA LUMPUR (Apr 19): AmBank Group Research expects the ringgit (MYR) to trade between its support level of S1: 3.8800 and S2: 3.8756 while the resistance is pegged at R1: 3.8914 and R2: 3.8988.

In his AmBankFXDaily note today, AmBank group chief economist and head of research Dr Anthony Dass said the MYR rose 0.02% to 3.8895 against the US Dollar.

He said support came from crude oil prices i.e. WTI and Brent, up 3.5% to US$68.78/barrel and 3.1% to US$73.82/barrel respectively, after Energy Information Administration reported a draw from US crude oil (actual: -1.1 million barrels, previous: +0.5 million) and gasoline inventories (actual: -3 million barrels, previous: +3.3 million), reflecting robust demand for energy.

“Though KLCI fell 0.06% to 1,879.32 we found net inflow of foreign funds amounted to RM87.9 million.

“But bond prices showed the yields of 7- and 10-year Malaysian Government Securities rose 2 basis points (bps) to 3.925% and 2.5bps to 4.030% with the 5- unchanged at 3.630%.

“The MYR gained against regional peers i.e. Singapore dollar by 0.1% to 2.9658, rupiah by 0.09% to 3,541.84, but softened against baht and peso by 0.02% to 8.0203, and 13.3962, respectively. The 5 year CDS rose 0.13% to 70.46,” he said.