AmBank Research cautious on ringgit after overnight fall on Wall St

KUALA LUMPUR: AmBank Research remains cautious on the ringgit due to the broad based strength in the US dollar amid the risk averse sentiment.

“Also with the chaos in Wall Street following the bear market in both equity and commodity space due to concerns of potential slower earnings and weaker economic growth, appetite for safe havens assets will remain strong in the near term,” it said on Wednesday.

AmBank Research also said the unresolved EU-Italy budget stand-off added with a report released by US Trade Representative (USTR) impacted sentiment.

It said investors were likely to adopt a wait-and-see attitude after the USTR report which cited “China has failed to alter its ‘unfair, unreasonable’ trade practices” though US President Donald Trump believes a deal can be struck with China over the ongoing trade negotiation.

“Hence, the ringgit is likely to trade between its support level of 4.1855 and 4.1876 while its resistance is pinned at 4.1921 and 4.1946,” it said.

Meanwhile, look out for Oct US durable goods sales and existing home sales, it said.

Source: TheStar