KUALA LUMPUR (Mar 13): AmBank Group Research said as the daily MACD gap narrows with the relative strength index falling gradually suggests the ringgit (MYR) is expected to trade in a tight range of S1: 3.8978 and S2: 3.8934, while the resistance is capped at R1: 3.9110 and R2: 3.9174.
In his AmBankFXDaily note today, AmBank group chief economist and head of research Dr Anthony Dass said key focus of the day are January Malaysia industrial production, retail sales, and February US consumer price index.
Dass said the MYR recovered 0.2% to 3.9045 against the USD.
“We noticed the KLCI witnessed a net foreign inflow of RM279.3 million which helped push the KLCI up 0.9% to 1,861.22.
“Crude oil namely WTI and Brent fell 1.2% to S$61.32/barrel and 0.8% US$64.96/barrel respectively, following Energy Information Administration's monthly report depicting that major US shale producers are expected to ramp up output by 6.95 million barrels per day collectively, in April.
“The 5-year Malaysian Government Securities yield rose 1.5 basis points (bps) to 3.600%, the 7- increased 1bps to 3.895%, and the 10- gained 0.5bps to 3.980%, respectively,” he said.
Dass said the MYR was softer against regional peers i.e. Singapore dollar by 0.08% to 2.9702, and rupiah by 0.05% to 3,525.29, but stronger against baht by 0.08% to 8.0154, as well as peso by 0.06% to 13.3183. The 5 year CDS fell 1.93% to 61.34.