This week the main Malaysian economic was better than expected GDP data.GDP for the fourth quarter came in at 4.5%, higher than market expectations of a 3.2% increase, while the economy contracted 1.7% for the full year, less than the average 2% in a survey.
As a result most economists revised their 2010 economic growth projection upward to around 4-5-4.8%. Some economist a bit cautious since they expect a slowdown in the second half on higher interest rates and as public-sector spending was reined in to balance the deficit.
Boasting the economy through public spending will invited the Greek fiscal fiasco.
Economist mostly concurred that a 25-basis point hike to 2.25% in Bank Negara’s overnight policy rate next week after the monetary policy committee meets.
The favorable economic news has no bearing on the ringgit since the currency seem to follow the other regional currency excluding the yen.
USDMYR was moving at tight range and the pair is now consolidating in a triangle with support at RM3.3830 and resistance 3.4217.
The MACD is now tagging the zero line and the blue lag has gone below the 45 level with red lag at the top. The 200 EMA and 60 EMA is almost flat.
The peak at candlestick formation of evening star doji with a high of 3.4146 was lower than the previous peak. If USDMYR gone pass the previous low of 3.3880, the move will be a continuation downward
