USD/IDR Price News: Rupiah welcomes Indonesia Retail Sales recovery above $14,000
|- USD/IDR fails to extend previous day’s recovery, retreats from intraday high of late.
- Indonesia Retail Sales improved to -14.6% in March, BI turns optimistic for April.
- Risk-off mood tests rupiah bulls amid a light calendar in Asia.
USD/IDR strengthens bearish impulse, down 0.08% intraday around $14,190, after upbeat Indonesia Retail Sales favored rupiah buyers during early Tuesday. Even so, the currency pair struggles to go all with the bears as risk-off mood favors US dollar bounce.
Indonesia Retail Sales for March recovered from 18.1% prior contraction, as well as the Bank Indonesia (BI) forecast of -17.1%, to a yearly drop of 14.6%. Following the data, the BI survey also said, “Stronger fuel sales were supportive, although sales of clothes and recreational amenities continued to show drops during the month,” per Reuters.
It should be noted that the BI expects a 9.8% increase in Retail Sales in April.
Also positive for the USD/IDR could be the upbeat China inflation figures for April. Although the headline Consumer Price Index (CPI) missed upbeat expectations, the Producer Price Index rallied to October 2017 tops earlier in Asia.
Read: China CPI 0.9% YoY vs expected 1.0% / PPI 6.8% YoY vs the expected 6.5%
Even so, USD/IDR bears struggle amid the fears of reflation weighing on the US stock futures and Asian stocks.
Moving on, Fed chatters will be the key ahead of the US inflation data for April, up for publishing on Wednesday. Also, the coronavirus (COVID-19) and vaccine updates may as well provide near-term direction to the USD/IDR prices.
Technical analysis
Unless rising beyond April’s low near 14,380, USD/IDR bears can keep the reins.
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