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MYR: Risk of Short Term Reversal
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§ We flagged the potential for USDMYR to go lower towards
3.90, 3.80 levels. We also flagged the potential for SGDMYR to go beyond its
recent low of 2.89.
§ Our initial objectives for both USDMYR at 3.90 and SGDMYR
at 2.89 were more than met (4 Apr).
§ But looking ahead, we caution for potential short-term
reversal in the lead-up to OPEC/non-OPEC meeting (17Apr). The combination of
renewed oil price weakness and cautious risk sentiment could persist. Stretched
USD-short positioning against AXJs could adjust, especially given the recent
moves lower. We see potential for USDAXJs including USDMYR to trade higher
(possibly towards 4.00). SGDMYR could follow suit towards 2.95 levels.
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