KUALA LUMPUR, Nov 23 (Bernama) -- The ringgit, like other Asian currencies, is likely to trade range-bound against the US dollar next week with most investors sidelined, pressured by developments surrounding the US-China trade negotiations, said a dealer.
FXTM market analyst Han Tan said given the light domestic calendar of events for the week ahead, the Malaysian ringgit’s performance should remain primarily exposed to external factors.
“Over the near term, a break above 50-day moving average could bring the 4.19 resistance line into play, while the immediate support level is seen at 4.14, which is also close to where the currency pair’s 200-day moving average currently lies.
“As we enter the final week of November, investors will remain vigilant over the United States (US)-China trade negotiations. Unless a trade deal is struck that includes the rolling back of existing tariffs, the global economy is set to continue being weighed down by the ongoing trade conflict,” he told Bernama.
Tan said investors would pay close attention to major economic data releases during the week ahead, including the US’ third-quarter gross domestic product and China’s October industrial profits.
“A positive surprise in the data may buffer recent gains in riskier assets, as investors cling on to hopes that a US-China trade deal can be eventually sealed,” he said.
On a Friday-to-Friday basis, the local note weakened to 4.1700/1750 from 4.1515/1545 recorded a week earlier.
The ringgit was lower as well against the Singapore dollar at 3.0590/0638 compared with 3.0468/0501 previously and vis-a-vis the yen to 3.8412/8469 from 3.8186/8217.
The local currency also depreciated versus the euro to 4.6116/6188 from 4.5737/5787 and slipped against the pound to 5.3672/3753 from 5.3446/3497.