Malaysia: Inflation climbs to multi-year highs – UOB

Pablo Piovano FXStreet

UOB Group’s Senior Economist Julia Goh and Economist Loke Siew Ting assess the latest inflation figures in Malaysia.

Key Quotes

“Headline inflation accelerated to a 4-year high of 4.7% y/y in Apr (from +1.7% y/y in Mar), largely due to transitory factors (i.e. higher commodities prices and food supply disruptions) and the lapse of electricity rebates that were introduced last year to relieve consumers’ burden during the fight against the COVID-19 pandemic. It also came amid the implementation of tighter COVID-19 containment measures and price control scheme for Hari Raya Aidilfitri during the month. Apr’s inflation rate was below our estimate (+5.9%) and Bloomberg consensus (+4.9%).”

“Consumer price inflation averaged 1.6% in the first four months of 2021 (Jan-Apr 2020: -0.04%), implying that our full-year inflation target of 3.0% remains achievable (official forecast: 2.5%- 4.0%; 2020: -1.2%). Headline inflation is projected to reverse course and come off to below 4.0% levels from Jun onwards. Rising pandemic-related risks and a weak labour market will continue to mitigate the impact of supply-led inflationary pressures, keeping overall inflation in check.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD recovers toward 0.7000 amid improving mood

AUD/USD is firming up toward 0.7000 in Asia on Tuesday, helped by improving market mood. A pause in the US Dollar rebound also aids the pair's upside. However, geopolitical risks and caution ahead of AI tech earnings report could limit the pair.

USD/JPY flatlines near 158.50 as markets seek direction

USD/JPY steadies around 158.50 in the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index inflation data later on Friday. Meanwhile, elevated US bond yields provide some support to the US Dollar against the Japanese Yen.

Gold just failed at $4,150. This is the next stop

Gold prices trade without a clear direction on Tuesday, hovering around the $4,170 region per troy ounce and still struggling to regain upside traction following Monday’s pullback. In the meantime, lower US Treasury yields and a marked pullback in the US Dollar come in tandem with the yellow metal’s price action.

Crypto Today: Bitcoin, Ethereum, XRP tick lower amid mixed ETF flows

Bitcoin is trading above $81,000 on Tuesday, aligning with a lethargic tone in the broader cryptocurrency market. Altcoins, including Ethereum and Ripple, reflect Bitcoin’s lock-step price action, trading below $2,400 and $1.30, respectively.

Markets at a turning point: Bitcoin, Gold, FX and Tech react to a heavy macro week

The new trading week opens with a mixed but revealing picture across global markets. Indices, commodities, FX, tech stocks, and cryptocurrencies are all sending one message: risk appetite is alive, but it is cautious, selective, and highly sensitive to macro signals.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.