USD/IDR stays on the back foot amid broadly positive Asian markets
|- USD/IDR nears four-day low, awaits further clues to extend the latest declines.
- Indonesian GDP dropped to four-year low the previous day, coronavirus fears prevail.
- Upbeat data from the major economies, rising equities keep the risk-tone lighter.
- Friday’s US jobs data will be the key to watch.
USD/IDR remains under pressure while taking rounds to 13,660 during the early Thursday. In doing so, the pair registers three-day declines while also ignores downbeat Indonesia GDP data flashed the previous day. The reason could be traced from the positive performance of Asian shares.
Indonesia’s fourth quarter (Q4) GDP declined below 5.04% forecast and 5.02% prior to 4.97% on YoY, testing the lowest level in four years. The growth figure weakened to -1.74% versus -1.67% expected on QoQ. Earlier during the week, January month Inflation data from the Asian nation increased the odds of the Bank Indonesia’s (BI) further rate cuts in 2020.
Despite marking no cases of coronavirus infections off-late, the Indonesian economy has shut down its exports from China while also respecting the travel ban. However, the country will be waiving the overstay penalty for Chinese tourists during the restriction period. Also on the negative side could be a swine fever that killed hundreds of pigs in Bali.
Looking at the positive side, equity benchmarks from Japan, China, Hong Kong and Indonesia are all marking gains by the press time. The reason could be the recently published positive data from the US, EU and the UK, not to forget the expectations that China won’t refrain from acting too aggressively to safeguard its economy.
Moving on, traders will now concentrate on the coronavirus updates as well as data from the major economies for fresh impulse ahead of Friday’s US employment numbers. It’s worth mentioning that there have been more than 560 deaths in China due to the lethal coronavirus so far till February 05.
Technical Analysis
A downward sloping trend line ranging from November 2019, at 13,880 now, keeps the pair’s run-up towards 14,000 doubtful while also dragging the quote in the direction to a monthly low near 13,600.
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