- USD/IDR picks up bids to snap two-day downtrend as US Dollar rebounds during holiday-thinned markets.
- Indonesia Inflation, S&P Global PMI came in firmer for December, President Widodo expects 2023 growth above 5.0%.
- Markets remain inactive but doubts surrounding China seem to weigh on IDR.
- US PMIs, FOMC Meeting Minutes and the US employment report will be crucial to watch for clear directions.
USD/IDR prints to mild gains around $15,560, following a two-day downtrend, as US Dollar rebounds amid a sluggish trading day. In doing so, the Indonesia Rupiah (IDR) pair ignores downbeat Indonesia data.
That said, Indonesia's Inflation rose by 5.51% YoY versus 5.39% previous whereas the MoM figures grew by 0.66% compared to 0.09% prior release. It’s worth noting that Core Inflation grew by 3.36% YoY against 3.3% previous readings. Furthermore, Indonesia S&P Global PMI for December also improved to 50.9 versus 50.3.
Earlier in the day, Indonesia President Joko Widodo mentioned, per Reuters, that he expects 2023 growth above 5.0%.
It should be observed that the latest Indonesia Inflation figures are above the Bank Indonesia (BI) target range between 2.0% and 4.0%, which in turn should have propelled the IDR. However, economic fears surrounding China, as well as holidays in major markets seemed to have allowed the USD/IDR bears to take a breather.
Doubts over China’s economic recovery, due to the Covid outbreak, join the downbeat comments from the International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva concerning Beijing, seem to underpin the US Dollar rebound. Even so, the latest headlines from Reuters seem to challenge the IDR bears by pushing back pessimism surrounding China. “Some people in China's key cities of Beijing, Shanghai and Wuhan braved the cold and a spike in COVID-19 infections to return to regular activity on Monday, confident of a boost to the economy as more recover from infections,” said Reuters.
Given the light calendar and off in multiple markets, not to forget recently mixed signals surrounding China, USD/IDR is likely to remain firmer. However, this week’s activity data from the US, Minutes of the latest Federal Open Market Committee (FOMC) meeting and December month employment numbers are crucial for clear directions.
Technical analysis
A successful trading beyond a five-month-old ascending support line, currently around $15,455, keeps USD/IDR buyers hopeful of challenging November 2022 peak of $15,821.
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 on the defensive around 1.0400 after upbeat US data
EUR/USD is under mild selling pressure around the 1.0400 mark following the release of upbeat United States data. Q3 GDP was upwardly revised to 3.1% from 2.8% previously, while weekly unemployment claims improved to 220K in the week ending December 13.
GBP/USD accelerates south after BoE rate decision
GBP/USD retreated from its daily peak and extends its slide sub-1.2600 following the Bank of England monetary policy decision. The BoE kept the benchmark interest rate unchanged at 4.75% as expected, but the accompanying statement leaned to dovish. Three out of nine MPC members opted for a cut.
Gold price resumes slide, pierces the $2,600 level
Gold resumes its decline after the early advance and trades below $2,600 early in the American session. Stronger than anticipated US data and recent central banks' outcomes fuel demand for the US Dollar. XAU/USD nears its weekly low at $2,582.93.
Bitcoin slightly recovers after sharp sell-off following Fed rate cut decision
Bitcoin (BTC) recovers slightly, trading around $102,000 on Thursday after dropping 5.5% the previous day. Whales, corporations, and institutional investors saw an opportunity to take advantage of the recent dips and added more BTC to their holdings.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.