Further consolidation seen in USD/MYR near term – UOB

USD/MYR faces extra rangebound within the 4.1330-4.1530 range in the short-term horizon, noted Quek Ser Leang at UOB Group’s Global Economics & Markets Research.

Key Quotes

“Last Monday (06 Sep, spot at 4.1450), we highlighted that ‘conditions remain oversold but the current weakness is not showing signs of stabilization just yet’. We added, USD/MYR ‘could edge lower towards 4.1350 but the next major support at 4.1200 is likely out of reach’.”

“While our view for a weaker USD/MYR was not wrong, instead of ‘edging lower’, USD/MYR plummeted briefly to a low of 4.1280 on Friday (10 Sep) before rebounding quickly. The rapid rebound amid oversold conditions suggests that USD/MYR is unlikely to weaken further. For this week, USD/MYR is more likely to consolidate and trade between 4.1330 and 4.1530.”