USD/IDR Price News: Rupiah welcomes highest Indonesia Retail Sales growth since 2016 above $14,200
|- USD/IDR drops for the second consecutive day, recently off intraday low.
- Indonesia Retail Sales jumped 15.6% versus -14.6% prior contraction.
- S&P 500 Futures, Asian stocks remain mildly bid despite firmer US bonds.
- US CPI becomes the key, risk catalysts may offer intermediate clues.
USD/IDR prints 0.22% intraday loss despite recent U-turn from intraday low to $14,247 amid early Thursday. Although the US dollar’s safe-haven appeal probes the pair sellers amid cautious markets, the rupiah (IDR) pair drops on an upbeat Indonesia Retail Sales growth.
As per the latest figures from Statistics Indonesia, the nation’s Retail Sales not only reversed the previous month’s contraction of -14.6% but rose +15.6% in April. “Bank Indonesia said rising purchases during the Muslim fasting month also boosted the numbers. BI predicts a 12.9% rise in retail sales in May” said Reuters following the release.
It’s worth noting that the upbeat stock futures and Asian equities, led by risk-positive news concerning the US-China trade and investment ties, also weigh on the USD/IDR prices.
On the contrary, the market’s cautious sentiment put a bid under the US dollar, probe the pair’s second consecutive day of losses.
Given the mixed sentiment ahead of the key US Consumer Price Index (CPI) data for May, USD/IDR sellers may wait for fresh clues before declining below the latest low near $14,223.
Read: US CPI May Preview: Inflation angst is coming
Technical analysis
A clear downside break of the monthly support line, around $14,265, directs USD/IDR towards May’s low of $14,092. It’s worth noting that a corrective pullback needs to cross a two-month-old falling resistance line near $14,340 to recall the pair buyers.
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