USD/IDR: Firm above 13,700 amid mixed catalysts from home and abroad
|- USD/IDR stays modestly positive after gaining the previous day.
- Risks of coronavirus, political tension at home confront the trade-positive signals.
- Qualitative indicators keep the risk tone heavy, economics follow the suit.
USD/IDR stays first around 13,710 during the Asian session on Friday. The coronavirus risk offered the latest upside push to the pair while talks of the trade deal between Indonesia and Australia failed to please the sellers. Also, favoring the pair’s strength is political noise at home as the government has denied taking back ex-IS military officials into the nation.
Following a surge in coronavirus cases to 14,840, due to the change in method of diagnosing the epidemic, the people infected from the virus recede to 4,823 as far as statistics from Hubei are concerned. However, the number of people in serious and critical condition rose to 9,638 from 7,084 prior.
At home, the government has banned citizens who are returning from the Islamic State group in Syria while citing security concerns. The move has been criticized much but has so far failed to push the nation towards a change in position.
Further, the Indonesia-Australia trade deal is much in the focus and could please farmers for the upcoming 100 days. However, recently languishing data at home pushes the government to accelerate spending, which was confirmed by the Finance Minister Sri Mulyani Indrawati while citing coronavirus fears on Tuesday.
In addition to the coronavirus updates, USD/IDR traders will have to follow the domestic geopolitical headlines and the US data for fresh impulse.
Technical Analysis
Multiple lows from late-January highlight 13,600 as the key support whereas 50-day SMA near 13,800 limits short-term upside.
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