USD/MYR: Consolidation near highs with upside risks – OCBC

FXStreet Insights Team FXStreet

OCBC strategists Sim Moh Siong and Christopher Wong report that USD/MYR is consolidating near recent highs after an early-week run-up, supported by broader USD strength and soggy risk sentiment. Geopolitical headlines around Iran and energy markets are seen as key drivers. They warn that further escalation could trigger risk-off flows, weakening high-beta Asian FX including MYR, with clear resistance and support levels outlined.

High-beta MYR vulnerable to risk-off flows

"USD/MYR. Consolidation near recent highs. USD/MYR consolidated this week after the run-up in early week. Combination of USD strength, soggy risk sentiments weighed on Asian FX, including MYR."

"For now, geopolitical headlines dominate and developments remain fluid. If tensions continue to escalate and trigger broad risk-off conditions, leading to further equity selloffs, EM outflows and rush for USD liquidity, then high-beta Asian FX, including MYR, can weaken temporarily regardless of oil/commodity dynamics."

"USD/MYR last seen at 3.9450 levels. Bullish momentum on daily chart intact while rise in RSI moderated. 2-way trades likely."

"Resistance at 3.95, 3.9630 (23.6% fibo retracement of Oct high to Feb low) and 3.9865 (50 DMA). Support at 3.9180 (21 DMA), 3.88 levels."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD extends the range play above 0.7200 as traders await US inflation data

AUD/USD is seen extending its consolidative price move above 0.7200 during the Asian session on Thursday amid mixed cues. Rising RBA rate-hike bets keep the Aussie close to its highest level since May 14. However, hawkish Fed expectations and escalating US-Iran tensions offer some support to the US Dollar, capping the currency pair as traders await US inflation figures.

USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold remains in the red, still below $4,400

Gold maintains an erratic trade so far this week, now slipping back below the key $4,400 mark per troy ounce following the stronger US Dollar and a strong rebound in US Treasury yields across the curve, particularly following US Producer Prices and ahead of Friday’s more relevant US CPI data.

XRP slides amid a fragile crypto market structure

Ripple (XRP) falls for the second straight day, trading at $1.37 on Thursday. The broader cryptocurrency market remains fragile as investors weigh the impact of geopolitical tensions in the Middle East, which triggered persistent increases in Crude Oil prices while restricting shipping through the Straight of Hormuz and the Red Sea.

Jobs opened the door for the Fed — inflation decides whether it walks through

The latest US jobs report did not end the debate over the Federal Reserve’s (Fed) next move. It may have done something more subtle: it gave policymakers permission to keep their options open. After months of softer labour market signals, August delivered a stronger-than-expected rebound.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.