- USD/IDR rebounds from five-week low, snaps three-day downtrend.
- Indonesia Inflation rose the most since late 2015 in July, Core Inflation also increased in the said month.
- US dollar pares recent losses amid sluggish markets, cautious sentiment ahead of key data/events.
USD/IDR marches towards $14,900 amid the initial hours of Monday’s Asian session. In doing so, the Indonesia rupiah (IDR) pair marks the first daily gains in four while bouncing off a five-week low printed the previous day.
In doing so, the USD/IDR pair pays little heed to Indonesia’s headlines Inflation data for July. As per the latest data, Indonesia Consumer Price Index (CPI) for July, the headline inflation gauge rallied 4.94% YoY versus 4.82% expected. Further details suggest that the Core CPI rose 2.86% versus 2.85% market consensus.
It’s worth noting that Indonesia’s Inflation data marked the biggest jump in price pressure in seven years.
The same should have ideally weighed on the USD/IDR prices amid hopes of further rate hikes from the Indonesia central bank, namely the Bank Indonesia (BI). However, the US dollar’s rebound and a light calendar appeared to have favored the pair’s recovery of late.
That said, Indonesia’s 10-year bond yields dropped to the lowest levels since June 08, around 7.11% by the press time, which in turn favored USD/IDR prices of late.
Moving on, ISM Manufacturing PMI for July, expected at 52 versus 53 prior, could direct immediate USD/IDR moves ahead of Friday’s US jobs report.
Technical analysis
USD/IDR recovers from the 50-DMA support surrounding $14,800 but the recovery moves need validation from mid-July’s swing low surrounding $14,940.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.