BNM: Overnight Policy Rate Left On Hold
Bank Negara Malaysia left the Overnight Policy Rate unchanged at 3.00%, in line with consensus. Prior to the meeting, 20 out of 25 economists polled by Bloomberg expected a hold, while the other five pencilled in a 25bp cut.
- The central bank said the resilient domestic demand will underpin growth, but trade tensions and global factors may weigh on the external sector, with risks to growth tilted to the downside. Inflation is expected to remain manageable this year.
- The BNM noted that the ringgit draws support from Malaysia's favourable economic prospects, but its performance will 'continue to be primarily driven by external factors.'
- Full statement here.
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MNI EXCLUSIVE: The BOJ is keeping an eye on Fed hawkishness
The BOJ is keeping an eye on Fed hawkishness. On MNI Policy MainWire now, for more details please contact sales@marketnews.com
AUDUSD TECHS: Bearish Outlook
- RES 4: 0.6409 High Dec 9 and a key resistance
- RES 3: 0.6389 High Apr 3
- RES 2: 0.6283 50-day EMA
- RES 1: 0.6127/0.6219 High Apr 7 / Low Mar 31
- PRICE: 0.6059 @ 08:01 BST Apr 8
- SUP 1: 0.5931 1.764 proj of the Sep 30 - Nov 6 - 7 price swing
- SUP 2: 0.5900 Round number support
- SUP 3: 0.5830 2.000 proj of the Sep 30 - Nov 6 - 7 price swing
- SUP 4: 0.5729 2.236 proj of the Sep 30 - Nov 6 - 7 price swing
The latest steep sell-off in AUDUSD cancels a recent bullish theme and instead, confirms a resumption of the downtrend that started late September last year. Monday’s fresh cycle low reinforces a bear theme. A key support at 0.6088, the Feb 3 low, has been broken. This paves the way for an extension towards 0.5931 next, a Fibonacci projection. On the upside, resistance to watch is at 0.6219, the Mar 31 low.
GILTS: Opening calls
Gilt Calls, 91.69/91.75 range.
