MALAYSIA: Malaysia Country Wrap: Saudi Utilities Invest in Malaysia
- Saudi utility Acwa Power Co. signed non-binding agreements with Malaysian firms, including to explore development of about 13 gigawatts of power generation capacity, totaling $10 billion in investments by 2040. Acwa’s collaborations will include renewable energy, green hydrogen and advanced water solutions, it said in a statement. One of the world’s largest private water desalination companies, Acwa signed the agreement with the Malaysian Investment Development Authority on Thursday. (source BBG)
- TDM Bhd., a major player in Malaysia’s palm oil industry, expects demand for the commodity to be largely unaffected by US tariffs even as global economic uncertainties weigh on market sentiment. “The escalating US-China trade tension will likely prompt China to lessen its reliance on US soybean imports by redirecting purchases to Brazil and Argentina, or by partially replacing soybean with palm oil, potentially increasing demand for Malaysian palm oil,” the company said in its earnings statement on Thursday. (source BBG)
- The FTSE Malay KLCI is down moderately today and down -1.10% for the week.
- The Ringgit has had a quiet day today but remains lower by -0.25% for the week
- The MGS 10YR has had a better day today but ultimately is little changed on the week at 3.55%
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JGBS: Modestly Richer, BoJ Decision Tomorrow
JGB futures are modestly stronger, +7 compared to the settlement levels.
- Outside of the previously outlined IP and Retail Sales data, there hasn't been much by way of domestic drivers to flag.
- The BoJ is widely expected to leave its benchmark interest rate unchanged at 0.5% tomorrow. This decision comes amid a complicated economic backdrop: while Tokyo’s core inflation rose to 3.4% in April — its highest level in two years, driven by higher food prices and reduced energy subsidies — risks to economic growth are increasing.
- Given the significant shifts in external conditions, particularly the US tariff policy changes since the last MPM in March, the BoJ is likely to adopt a cautious, wait-and-see stance at this meeting. (See MNI BoJ Preview here)
- Cash US tsys are slightly mixed in today's Asia-Pac session. Today’s US calendar will see ADP private jobs data, GDP, Chicago PMI, PCE and Home Sales.
- Cash JGBs are flat to 2bps richer (5-year). The benchmark 10-year yield is 0.7bp higher at 1.312%.
- Swap rates are 1-3bps lower. Swap spreads are mixed.
- Tomorrow, the local calendar will also see Jibun Bank PMI Mfg and Consumer Confidence data.
SCHATZ TECHS: (M5) Bull Cycle Remains In Play
- RES 4: 107.812 0.618 proj of the Mar 6 - Apr 7 - 9 price swing
- RES 3: 107.800 Round number resistance
- RES 2: 107.775 High Apr 7 and the bull trigger
- RES 1: 107.735 High Apr 22
- PRICE: 107.485 @ 05:52 BST Apr 30
- SUP 1: 107.387 20-day EMA
- SUP 2: 107.252 38.2% retracement of the Mar 6 - Apr 7 bull cycle
- SUP 3: 107.125 Low Apr 10
- SUP 4: 106.965 Low Apr 9 and a key support
A bull cycle in Schatz futures remains in play and the latest pullback appears corrective. Sights are on resistance at 107.775, the Apr 7 high and bull trigger. Clearance of 107.775 would confirm a resumption of the uptrend and open 107.812, a Fibonacci projection. Moving average studies remain in a bull-mode position, highlighting a dominant uptrend. Initial firm support to watch lies at 107.387, the 20-day EMA.
GBPUSD TECHS: Bullish Trend Structure
- RES 4: 1.3605 1.236 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 3: 1.3550 High Feb 24 ‘22
- RES 2: 1.3510 1.236 proj of the Feb 28 - Apr 3 - 7 price swing
- RES 1: 1.3444 High Apr 28 / 29
- PRICE: 1.3391 @ 06:10 BST Apr 30
- SUP 1: 1.3280 Low Apr 28
- SUP 2: 1.3202 20-day EMA
- SUP 3: 1.3041/3002 Low Apr 14 / 50-day EMA
- SUP 4: 1.2807 Low Apr 10
The trend condition in GBPUSD remains bullish and Monday’s fresh cycle high reinforces current conditions. The move higher highlights a resumption of the uptrend and maintains the price sequence of higher highs and higher lows. Moving average studies are in a bull-mode position too, signalling a dominant uptrend. Sights are on 1.3510, a Fibonacci projection. Support to watch lies at 1.3202, the 20-day EMA.
