KUALA LUMPUR: The ringgit is expected to see positive momentum this week, trending in upward bias against the US dollar and potentially pushing towards its support level, analysts say.
Bank Muamalat (M) Bhd chief economist Dr Mohd Afzanizam Abdul Rashid opined that the ringgit is likely to attempt breaking its immediate support level of 4.3000, should the greenback continue to retreat over weaker employment data.
The United States non-farm payroll (NFP) data last Friday only came in at 142,000 jobs in August, falling short of consensus expectation of 165,000 jobs, albeit an increase from 114,000 jobs recorded in July.“We expect the ringgit to continue demonstrating a healthy trend as the NFP data came in lower-than-expected, which is seen as a contributing factor to the ringgit’s performance.
“Nevertheless, the market will also focus on key data points this week – US Consumer Price Index (CPI) and Producer Price Index data to assess the inflation, as well as Japan’s second quarter 2024 gross domestic product and China’s CPI, trade and new loans,” he told Bernama.
Meanwhile, SPI Asset Management managing director Stephen Innes noted that as the US employment market is cooling down, it could provide support to the ringgit.
