To trade stronger around 4.67/USD if nonfarm payroll corrects lower; technical correction likely
While Fed Chair Powell maintains a hawkish stance and asserts that the central bank is not prepared to initiate interest rate cuts, signs of a cooling US labour market, evident in the deceleration of ISM services employment, slower growth in private payrolls, and a decline in job openings, have dragged the USD index (DXY) to trade around the 103.0 level. The weakening USD, coupled with positive China trade data and the BNM's decision to maintain the status quo, has contributed to the strengthening of the ringgit, reaching 4.71/USD. Notably, this week saw net foreign inflows of RM0.7b into the domestic debt market, indicating a rise in foreign demand.
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