USDIDR Price News: Rupiah drops towards $15,700 despite upbeat Indonesia Consumer Confidence
|- USDIDR remains mildly bid, extends week-start rebound amid sluggish session.
- Indonesia Consumer Confidence rise to 120.30 in October.
- US dollar licks its wound amid firmer yields, covid fears from China.
- Light calendar restricts immediate moves, US inflation in focus.
USDIDR picks up bids to print mild gains around $15,685 during Tuesday’s inactive Asian session. In doing so, the Indonesia Rupiah (IDR) pair fails to cheer the recently firmer Consumer Confidence data amid easing market optimism.
Indonesia’s Consumer Confidence gauge rose to 120.30 versus 117.2 printed in September. It’s worth noting that the covid fears emanating from China also challenge the optimism in the Asia-Pacific region.
Recently, China reported the biggest jump in the fresh daily coronavirus numbers since April, which in turn justifies the dragon nation’s previous defense of the zero-covid policy.
Elsewhere, geopolitical fears surrounding the next week’s Group of 20 (G20) nations’ meeting in Bali also propel the USDIDR prices of late.
Recently firmer US Treasury yields and cautious mood ahead of Thursday’s US Consumer Price Index (CPI) for October also underpin the USDIDR trader’s bullish bias.
Against this backdrop, the US Treasury yields are firmer and stock futures remain indecisive but the US Dollar Index (DXY) rebounds from a one-week low.
Moving on, markets in the Asia-Pacific region may witness a lack of momentum amid mixed clues and an off in India. However, inflation numbers from China and the US, up for publishing on Wednesday and Thursday respectively, will be crucial to watch for fresh impulse.
Technical analysis
The USDIDR pair’s sustained bounce off the 10-DMA, around $15,535 by the press time, enables buyers to aim for the yearly top marked earlier in November, around $15,820.
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