SINGAPORE (Jan 31): What's not to like for the ringgit? Palm oil has been on a tear this month, Malaysia exports rose more than forecast and Fed dovishness adds another tailwind for EM currencies.

The ringgit has been slow to follow the 18% jump in crude palm oil futures since November, but that could soon change. December's trade surplus comfortably beat estimates, and a few hours later the Fed provided more good news by signaling its tightening cycle is largely over.

Long-term investors may want to wait for further details on the nation's economic priorities, set to be detailed in an upcoming government policy paper. But for short-term traders the stars are aligned for the ringgit to extend this month's advance. For USD/MYR the 200-day average at 4.0801 has been a pivot line for the past six months, and could become a ceiling as downside momentum builds.