Friday 29 Mar 2024
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KUALA LUMPUR (April 29): Ringgit trades in a narrow range as investors await a raft of key events this week, including a Federal Reserve review and China manufacturing data.

* USD/MYR steady at 4.1330 vs range of 4.1300-4.1335

** Support 4.0930, 4.0740, 4.0545; resistance 4.1500, 4.1655,
4.1785

** NOTE: MYR dropped 1.2% in the past one month

* Ringgit has weakened on rising bets for a policy easing and fears of bond outflows, DBS analysts Irvin Seah and Duncan Tan wrote in note Friday

** BNM may cut the benchmark rate by 25bps as early as May amid moderating growth and muted inflation

** With a rate reduction largely priced in, focus will be on FTSE Russell’s September review of Malaysian bonds, and the lingering risks will continue to drive govt yields higher 

* EM Asia FX will take their cues from the Fed review and U.S. non-farm payrolls report this week, with stronger data expected to buoy the dollar further, says Marcus Wong, a strategist at CIMB Bank in Singapore

** If the Caixin manufacturing PMI holds above 50, this would reassure investors that China’s economy is heading toward a recovery in 2H, and USD/CNH may head for the 6.7000 support if there’s further progress in U.S.-China trade talks 

* Malaysia’s 10-year govt bond yield drops 1bp to 3.78%

* Auction of RM3b of 2026 govt bonds closes at 11:30am local time

* Govt is considering Chinese companies’ request for a one-stop center to facilitate investments in Malaysia, PM Mahathir Mohamad said Sunday

** Also said cost of East Coast Rail Link may be cut further if the project’s scope is reduced

* Govt may act against banks for rejecting housing loan applications without reason: Finance Minister Lim Guan Eng

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