Ringgit to move in range of 3.9453 – 3.9617 against USD today, says AmBank Research

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KUALA LUMPUR (May 16): AmBank Group Research said it expects the ringgit  (MYR) to trade within its support level of 3.9453 and 3.9397 while the resistance to hover around 3.9617 and 3.9718.

In his AmBankFXDaily note today, AmBank group chief economist and head of research Dr Anthony Dass said the MYR movement will be influenced by the dollar apart from domestic factors.

He said the 1Q2018 gross domestic product (GDP) data will be announced on May 17 and his estimate shows a growth of 5.5% while consensus are looking at 5.6%.

“We reiterate our full year GDP growth of 5.5% with Pakatan Harapan winning the GE14 as the domestic economy will continue to be supported domestic activities and exports,” he said.

Dass said the MYR fell 0.1% to 3.9562 against the US Dollar.

He said that in the local bond space, the 5-, 7-, and 10-year Malaysian Government Securities yields rose 1.5 basis points (bps), 4.0bps, 4.0bps to 3.840%, 3.980% and 4.170% respectively.

Meanwhile, he said the KLCI fell 0.1% to 1,848.20 with a net foreign outflow of RM837.3 million.

“Crude oil prices were mixed, with WTI up 0.3% to US$71.16/barrel while Brent fell 0.05% to US$78.19/barrel.

“Meanwhile, the MYR strengthened against regional currencies like Singapore dollar by 0.1% to 2.9590, baht by 0.5% to 8.1208, rupiah by 0.3% to 3,548.12 but weakened against peso by 0.02% to 13.2591. The 5 year CDS fell 1.35% to 84.40,” he said.