Ringgit to trade between 4.2119 and 4.2268 vs USD today, says AmBank Research

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KUALA LUMPUR (Sept 28): AmBank Research expects the ringgit (MYR) to trade between its support of 4.2119 and resistance of 4.2268 versus the US dollar today with greater possibilities for MYR to reach the research house’s resistance level.

In its AmBankFXDaily note today, the research house said selling pressure from the FBM KLCI and upwards pressure on yields could stay on, especially with US tax plan plus rising on the sentiments of a Fed rate hike and the US 2QGDP estimated to grow by 3.0% versus house estimation of 2.9%.

AmBank Research said the dollar strengthened by 0.50% to 93.43 amid US President Donald Trump’s tax plan reveal, sentiments on a December rate hike and better-than expected August durable goods orders which was up 1.7% month-on-month (market expectation: 1%).

“Meanwhile, pending home sales fell 2.6% m-o-m (expectation: -0.5%).

“The pound tumbled by 0.52% to 1.34 following stronger greenback while the euro declined 0.37% to 1.175 on concern over the coalition talks post-German election,” it said.