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Daily FX Focus

26 July 2024

Important Risk Warning

  • The investment decision is yours but you should not invest in this product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation and investment experience.
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  • Currency conversion risk - the value of your foreign currency and MYR deposit will be subject to the risk of exchange rate fluctuation. If you choose to convert your foreign currency and MYR deposit to other currencies at an exchange rate that is less favourable than the exchange rate in which you made your original conversion to that foreign currency and MYR, you may suffer loss in principal.

AUD

Support / Resistance

vs USD 0.6436 / 0.6720  ⬇

AUD fell against the dollar yesterday amidst alarming economic indicators in China and Australia. The RBA remains hawkish and does not show signs of easing on its stance and markets bet on a hike in Q4. AUDUSD fell 0.65% yesterday while AUDHKD ended at 5.10 level.

EUR

Support / Resistance

vs USD 1.0783 / 1.0929  ⬆

EUR ended slightly higher against the dollar yesterday as the USD softened. The USD trimmed losses after data showed US economy expanded faster than expected. July IFO Business Climate index unexpectedly fell, came in below expectations. EURUSD rose 0.05% yesterday while EURHKD ended at 8.46 level.

GBP

Support / Resistance

vs USD 1.2738 / 1.3004  ➡

GBP fell slightly against the dollar yesterday on robust US Q2 GDP growth and as market expectations of a BoE rate cut next week weighed on the GBP. While investors await US PCE inflation data release today. GBPUSD fell 0.43% yesterday while GBPHKD ended at 10.03 level.

NZD

Support / Resistance

vs USD 0.5795 / 0.6066  ⬇

NZD ended lower against the dollar yesterday as stronger US data has trimmed some rate cut expectations in September underpinning USD. While disappointed Chinese data and growing odds of a rate cut by the RBNZ drag the NZD lower. NZDUSD fell 0.74% yesterday while NZDHKD ended at 4.59 level.

RMB

Support / Resistance

vs USD 7.1965 / 7.2906  ⬆

CNH rose against the dollar yesterday and the onshore yuan was on course for its best session since December amid sharp rise in the Japanese yen and state bank support in both onshore and offshore markets. USDCNH fell 0.35% yesterday while CNHHKD ended at 1.07 level.

CAD

Support / Resistance

vs USD 1.3660 / 1.3920  ⬇

CAD weakened against the dollar yesterday falling to an eight-month low as Bank of Canada shifts its focus to boosting the economy rather than suppressing inflation. CAD losses were limited by a rise in oil prices. USDCAD rose 0.12% yesterday while CADHKD ended at 5.64 level. 

JPY

Support / Resistance

vs USD 149.98 / 159.85  ⬆

JPY ended slightly lower against the dollar yesterday despite at one point hit a six-week high before settling as the USD rebounded. Yen was on track for its best weekly gain since late Apr. USDJPY rose 0.04% yesterday while JPYHKD ended at 5.07 level.

SGD

Support / Resistance

vs USD 1.3377 / 1.3503  ⬆

SGD ended marginally higher against the US dollar yesterday, as the USD ended slightly softer. The MAS kept its monetary policy settings unchanged and expects growth momentum to improve in second half of 2024. USDSGD fell 0.01% yesterday while SGDHKD ended at 5.80 level.

MYR

Support / Resistance

vs USD 4.6414 / 4.6977  ⬆

USDMYR was traded on a weaker tone yesterday with the ongoing RMB & JPY strengths continued to lead MYR recovery. The pair opened a tad below 4.67 levels and was broadly consolidated in the morning session with good 2 way interest seen in the market. However better selling interest flows in the afternoon session has sent USD weaker briefly below 4.66 levels before it eventually end the session at 4.66. Overnight, USD surged mildly with the release of better than expected US GDP which showed an expansion of 2.8%. USDMYR opened slightly higher at 4.6650 today and expect to trade between 4.65-4.68 range.

⬆ Consolidation, indicates that the currency's movement against USD has remained sideways

➡ Up Trend, indicates that the currency has been moving higher against the base currency

⬇ Down Trend, indicates that the currency has been moving lower against the base currency

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