MYR: USDMYR Bounces off Key Technical
- Whilst many of its regional peers are putting in a strong rally today, USDMYR is losing ground, giving back some of the gains in recent days.
- The Ringgit had broken below a previously held resistance level of 4.2040 but after five days of gains, is weaker by +0.22% in morning trade.
- Yesterday USDMYR hit lows of the year at 4.1875 which coincided with reaching oversold territory on a 14-day Relative Strength Index, suggesting that the bounce today could be technically driven / profit taking.
- USDMYR 1M ATM Vol is relatively unchanged at 5.73 and the FTSE Malay KLCI has ticked up only +0.17%.
- The outlier appears to be the MGS market which is rallying across the curve with 10-Yr down -3bps to 3.46%.
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CHINA PRESS: Stable Operation Of Captial Market To Be Supported
China’s capital market will continue with its stable and positive development supported by good economic momentum, coordinated policy efforts, and inflows of medium- and long-term funds, said Securities Daily in a commentary. The stock market valuation is returning to a reasonable range at an accelerated pace, which has improved the safety margin of the market and led to insurance and mutual funds increasing their allocation, which will help smooth short-term market fluctuations and guide more rational investment behaviour, the newspaper said.
CHINA: Manufacturing PMI Hits Six Month High
- China's RatingDog China PMI Mfg for September was +51.2, up from +50.5 in August and the highest since March.
- Having contracted in May and July on trade war related volatility, today's strong release will be pleasing as some signs of the first half strength may not be sustained.
- Output was up to 52 from 50.5 in August and New orders were stronger than the month prior and the highest print since February.
- RatingDog China PMI Services for September was 52.9 from 53.0 in August.
- Employment declined to +48.4 from 48.7 for the lowest since April.
- Prices charged rose relative to the last month.
CHINA PRESS: Beijing's New Tool To Leverage Trillions Of Investment
The CNY500 billion policy-based financial instruments announced by the National Development and Reform Commission Monday are expected to leverage about CNY6 trillion in investment, equivalent to 24% of the total infrastructure investment in 2024, Yicai.com reported citing Wang Qing, analyst with Golden Credit Rating. The new tool, aimed at replenishing project capitals, will likely drive the infrastructure investment growth by 3-4 percentage points within three years, Wang said. The figure grew by 2% y/y in the first eight months, decelerating by 1.2 pp from the Jan-Jul period.
