Why did weaker US jobs data lift ringgit opening sentiment versus the dollar?

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Weaker US Jobs Data Boosted Ringgit Against Dollar Due to Federal Reserve Policy Expectations

The Malaysian ringgit opened stronger against the US dollar on July 3, driven by the release of weaker-than-expected US jobs data for June. This economic indicator reinforced expectations that the US Federal Reserve (Fed) might adopt a more cautious stance on interest rates, which typically benefits emerging market currencies like the ringgit.
US Nonfarm Payrolls Fell Short of Expectations

In June, US nonfarm payrolls saw an increase of only 57,000. This figure significantly missed the consensus forecast of 114,000, indicating a potential slowdown in the US labour market. Furthermore, the payroll figures for both April and May were revised downwards, suggesting that the labour market's strength might not be sufficient to warrant an immediate interest rate hike by the Federal Reserve.
Technical Analysis Suggests Further Ringgit Appreciation

From a technical analysis standpoint, the ringgit against the US dollar has already entered oversold territory. This condition typically suggests that the currency could experience further appreciation in the near term. The ringgit's opening at 4.0705/0805 on July 3, compared to the previous day's close of 4.0780/0830, reflects this positive sentiment.
Ringgit Strengthened Against Other Major Currencies

Beyond the US dollar, the ringgit also demonstrated strength against a basket of other major currencies at the opening on July 3. It appreciated against the British pound, strengthened against the Japanese yen, and edged up against the euro. Additionally, the local currency traded higher against several regional currencies, including the Philippine peso, Indonesian rupiah, Thai baht, and Singapore dollar.

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Why did weaker US jobs data lift ringgit opening sentiment versus the dollar?

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