Like this Msia will die............ LTH already in deep waters

Do you have link?

Yeah...AUD tanked 2% yesterday!

For those interested in AUD,..................

After the U.S. Federal Reserve and the Bank of Japan kept their monetary policies unchanged in the previous week, investors will be closely watching the Reserve Bank of Australia (RBA), with some expecting a possible rate cut on the back of weak inflation data.

The central bank meets on Tuesday.

Latest round of data released by the Australian Bureau of Statistics showed consumer prices unexpectedly fell 0.2 percent in the first quarter compared with the December 2015 quarter. Annual inflation also slowed, rising 1.3 percent in the 12 months to March 2016, compared with a 1.7 percent annual increase in the 12 months through December 2015.

This falls below the central's bank's target inflation rate of 2-3 percent.


"Inflation was not just mildly below expectations, it was dramatically below even the lowest of expectations" of market watchers, according to analysts at Goldman Sachs. "The disinflation was broad based."
"The RBA has long placed its central focus on inflation targeting, with a watchful eye to ensuring financial stability," the Goldman analysts added. "There is now little question that inflation is sufficiently low to justify an easing."

"We think that the RBA should, and most likely will, cut the official cash rate by 0.25 percent, taking it to 1.75 percent when it meets on Tuesday," said Shane Oliver, head of investment strategy and chief economist at AMP Capital.
Oliver explained that a combination of global deflationary pressures, soft demand at home and very weak wage growth could see inflation remain well below the target for an extended period. It is a risk, he said, the RBA cannot ignore for too long.
A Reuters poll, however, showed majority of market watchers expect the RBA to leave its cash rate unchanged at 2 percent.
Following the RBA decision on Tuesday, Australia will announce its 2016-17 Federal Budget in the evening local time. This will be the government's "main economic statement" ahead of a likely election in July, said Oliver. "Government will want to include some sweeteners."
Australia's AAA sovereign rating could be at stake due to persistent budget deficits.
"The ratings agencies are losing patience," Oliver explained. "We are now looking at a 12-13 year run of budget deficits, which swamps the 7 years seen in the 1990s and the 5 years in the 1980s."

Fitch Ratings said in March that a sustained widening of the fiscal deficit without remedial policy actions could imperil the country's debt rating.

Also on tap this week:

Monday, 2 May 2016

No major economic data due
Tuesday, 3 May 2016
Australia - Reserve Bank of Australia monetary policy decision
Australia - 2016-17 Federal Budget

http://www.cnbc.com/2016/05/01/in-focus-rb...ta-in-asia.html

However, MYR is just as Shite!

Strange SGD huh? That's some strength!

5 reasons why the ringgit can expect a bumpy ride







By:


Kang Wan Chern



Malaysian ringgit



SINGAPORE (June 1): The Malaysian ringgit has recovered substantially since falling to a record low of 4.45 against the US dollar in September last year. On June 1, the USD/MYR traded at 4.15, a level which is still undervalued against the currencies of Malaysia’s trade partners.

Yet, Heng Koon How of Credit Suisse warns that the MYR will likely weaken further as the year draws on. “The fundamental outlook for the MYR remains challenging,” writes Heng in a Wednesday report.

Here are five reasons why the odds are stacked against the Malaysian currency:

1. Growth is slowing. GDP growth in the country slowed to 4.2% y-o-y in the first three months of the year, coming in below analyst expectations of 4.2% and down from 4.5% y-o-y in 4Q2015. It is the fourth consecutive quarter of slower growth for Malaysia. Inflation has continued to drift lower, with headline CPI easing to 2.1% y-o-y in April compared to 2.6% y-o-y in March. At its recent monetary policy meeting on May 19, Bank Negara Malaysia also kept its Overnight Policy Rate unchanged at 3.25%.

2. Oil prices are volatile. On one hand, the recent strength in oil prices has helped to stabilise Malaysia’s shrinking current account surplus and fiscal outlook, given that one-fifth of the country’s revenues come from oil and gas exports. On the other, volatility will likely remain high as the global demand and supply of oil tries to balance out. If oil prices pull back, it will drag the MYR down with it.

3. Higher US interest rates. While the MYR recovered substantially against the USD earlier this year, the currencies have reversed course now that the US Federal Reserve has signalled that a rate hike is imminent in the months ahead. As a result, Asian currencies, including the MYR, have weakened against the greenback as funds flow out of the region and back into the US.

4. Insufficient currency reserves. Across 2015, Malaysia’s foreign exchange reserves fell below the critical US$100 billion ($137.8 billion) psychological level to a low of about US$94 billion in October. It currently stands at US$97 billion, which is still “inadequate,” says Heng. “Compared to Malaysia’s total external debt, the FX reserve coverage ratio is now below 1 at about 0.8. In other words, should there be another round of capital outflows, the MYR may well experience similar acute weakness as witnessed previously in Q3 last year,” he writes.

5. 1MDB concerns. Even though Malaysia’s Finance Ministry took over the state fund’s balance sheet in May and ratings agency S&P expects the government to honour 1MDB’s debt obligations, risks still remain as the scandal continues to unfold. After defaulting on a US$1.75 billion bond last month, 1MDB paid its coupon for the latest scheduled payment on Monday.

As a result, Heng is expecting to see the USD/MYR trade at around 4.10 within a 3-12 month period.
- See more at: http://smr.theedgemarkets.com/article/5-re...h.LbKOMr4Z.dpuf

As long as your corrupt yourself, there are great opportunites.

MYR seems to do down with everything event!

So true

This sort of valuation is actually quite erroneous. It's all paper numbers.

The thing is not everyone loses ina general market.

Some may have bought low, some high. So loss for some, greater loss for some others. Some may still be in the profit.

That's the thing. It's not an absolute.