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.
“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.”