USD/IDR stays positive above 14,000 amid doubts over Indonesia's coronavirus status

USD/IDR rise to the highest since early December 2019 while taking the bids to 14,080, up 0.81%, during early Thursday. The pair recently benefited from the global doubts over how Indonesian can have no coronavirus cases despite being near to China. Also contributing to the pair’s upside is flooding in Jakarta and broad risk-off.

Although none of the 132 Indonesian lab tests came out as positive for coronavirus (COVID-19), Sydney Morning Herald joins the diplomatic community in Indonesia to doubt the government’s positive front. The reasons cited were the lack of amenities as well as political pressure. Further, pushes the voters to blame the Joko Widodo-led government for their inefficiency in managing the frequent natural calamity.

On Wednesday, Indonesian Finance Minister Sri Mulyani Indrawati accepted the fact that the government expects a wider fiscal deficit after announcing a multi-billion-dollar stimulus to tame the coronavirus risk.

Elsewhere, the market’s risk-tone remains heavy due to the widespread contagion of the Chinese virus outside Beijing and propels the pair. While portraying the same, the US 10-year treasury yields remain weak around 1.309% whereas S&P 500 Futures lose more than 1.30% to 3,068. Moreover, Indonesia’s IDX Composite dip 2.10% to 5,570 by the press time.

Looking forward, the second readings of the US GDP, January month Durable Goods Orders  and coronavirus headlines can direct near-term moves of the pair.

Technical Analysis

A sustained break of the six-month-old falling trend line, at 13,890 now, USD/IDR prices are rising towards November 2019 high near 14,230.