Never miss a story from Daniel Dubrovsky

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Daniel Dubrovsky

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

Malaysian Ringgit, USD/MYR, Malaysia GDP Talking Points

  • Malaysian Ringgit gains after better-than-expected local Q2 GDP data
  • US Dollar may resume rise as trade wars fuel demand for safe havens
  • In the near-term, USD/MYR uptrend is looking increasingly vulnerable

Trade all the major global economic data live as it populates in the economic calendar and follow the live coverage for key events listed in the DailyFX Webinars. We’d love to have you along.

Malaysian Ringgit Gains as Local GDP Beats Expectations

The US Dollar may resume its rise against MYR despite better-than-expected Malaysian growth after Singapore’s disappointed. In the second quarter, Malaysian GDP rose 4.9 percent y/y versus 4.7 percent anticipated. That was the fastest pace of expansion since the first quarter of 2018. Quarter-over-quarter, growth clocked in at 1.0 percent which was better than the 0.9 estimate but down from 1.1 percent prior.

Looking at expenditures, the bulk of outperformance in Malaysia was derived from private spending which increased 7.8 percent y/y. Consumption does represent roughly two-thirds of the economy. Meanwhile, imports of goods and services contracted 2.1 percent while exports rose 0.1 percent. Since imports subtract from GDP while exports increase it, the reduction in the former worked to boost growth.

While this may support the Malaysian Ringgit in the near-term, downside risks are brewing externally. Over the past 24 hours, we saw US President Donald Trump hint that his trade war with China and Europe could go on for some time. The threat of capital fleeing emerging markets and the ASEAN region during times of aggressive risk aversion could work to boost the haven-linked and highly-liquid US Dollar.

USD/MYR Technical Analysis

The USD/MYR daily chart does appear to be showing signs of a top in the near-term with support being pressured at 4.1800. This followed negative RSI divergence which showed fading upside momentum which at times is a signal of an impending reversal or consolidation to come. A decline places the next area of support at 4.1550. Otherwise, resuming its near-term uptrend exposes 4.2090.

USD/MYR Daily Chart

US Dollar May Gain Versus Ringgit Despite Malaysia GDP Surprise

Chart Created in TradingView

Malaysian Ringgit Trading Resources

--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter