KUALA LUMPUR: The ringgit was unchanged with an upside bias against the US dollar on Tuesday morning as trade tension between the US and Mexico de-escalate, a dealer said.At 9am, the ringgit was at 4.1620/1660 against the greenback from 4.1620/1650 at Monday's close.OANDA Senior market analyst, Edward Moya said both North American neighbours recently brokered a deal on immigration which would avert the US from imposing a punitive tariff on Mexican goods for now.As part of the deal, Mexico will deploy 6,000 more troops at the border to deter illegal migration to the US with the application for asylum are processed within the country.Trump claimed a document was signed, but Mexico’s foreign minister said that was not the case. "For now, markets will not worry about the Mexico and US relations and move the focus back to the ongoing Sino-US trade war," he said.At the opening, the ringgit, however, traded mostly lower against a basket of major currencies, except against the pound.It depreciated against the Singapore dollar to 3.0469/0518 from 3.0451/0477 at last Monday's close, lower versus the yen to 3.8352/8400 from 3.8331/8366 and weakened against the euro to 4.7085/7147 from 4.7047/7098.Vis-a-vis the pound, the local unit was better at 5.2799/2854 to 5.2812/2866 at last Monday's close. - BernamaAmbank research expects the ringgit to be sensitive to external newsflow given US President Donald Trump's tariff threats against China. "Overnight, President Trump said that China would be forced to make a trade deal with the US but doubled down on threats to impose steep tariffs on all of its products if negotiations failed. "Looking at the current scenario, we feel risk appetite will remain lackluster while upside pressure on USDCNH remains," it said in a note.The research house expects the local currency to trade between a support level of 4.1472 and 4.1563 while resistance is pinned at 4.1689 and 4.1749.For today, the key focus would be April industrial production growth, which has a consensus forecast of 2.7% year-on-year.

Source: The Star June 11, 2019 02:15 UTC