Indonesia GDP grows 5.02% YoY in Q3, USD/IDR stays on the backfoot


  • USD/IDR drops to 14,020 after Indonesia’s Q3 GDP figures beat estimates.
  • Weak inflation, softer than the previous GDP still keeps BI’s another rate cut on the cards.

Given the better than forecast Gross Domestic Product (GDP) numbers Indonesian growth during Q3, USD/IDR drops to 14,018 while heading into European markets open on Tuesday.

As per the latest release from Statistics Indonesia, the Indonesian economy grew 3.06% versus 3.05% forecast and 4.20% prior to QoQ while also flashing 5.02% YoY growth figure compared to 5.01% expected and 5.05% earlier for the third quarter (Q3) 2019.

The pair earlier recovered on the Bank Indonesia’s (BI) October month Consumer Confidence data that arrived at 118.4 versus 121.8 booked in September.

BI Governor Perry Warjiyo recently said that there is room for the currency to strengthen even more while citing low inflation, 3.2% versus 3.32% prior and 3.29% forecast in October, and good economic prospects.

Investors will now look forward to November 20-21 monetary policy meeting by the BI in order to ascertain the near-term direction of the Indonesian Rupiah (IDR). In its October monthly meeting, the Indonesian central bank announced the fourth rate cut in a row.

Technical Analysis

In addition to the 50-day Exponential Moving Average (EMA) level around 14,105, a descending trend line since early-August, around 14,140, and 200-day EMA near 14,190 also question pair’s recovery. However, pair’s downside seems strong support around 13,970, a break of which could recall 13,880 on the chart.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD bounces after upbeat COVID-19 cure news

EUR/USD is trading above 1.13, rebounding from the lows. Gilead reported that its drug Remdesevir substantially reduces mortality among COVID-19 patients. The news boosted stocks and weighed on the dollar. US coronavirus statistics are due out.

EUR/USD News

GBP/USD recaptures 1.26 as the market mood improves

GBP/USD is trading above 1.26 as the market mood improves and the safe-haven dollar retreats. Investors are shrugging off Brexit concerns and focusing on hopes to cure coronavirus. US COVID-19 statistics are due out.

GBP/USD News

XAU/USD consolidates daily gains above $1,800

After advancing to its highest level since September of 2011 at $1,818 on Wednesday, the XAU/USD pair staged a correction and briefly dropped below $1,800 on Thursday.

Gold News

Cryptocurrencies: War for dominance hit the bedrock of the market

Bitcoin tried to regain market share and activated sales in the Altcoin segment. BTC/USD, ETH/USD and XRP/USD are looking for supports and a rebound to push them to new elative highs. The current compression on the XRP/USD chart could trigger an exploding movement.

Read more

WTI once again breaks $40 per barrel after trading lower in early EU trade

There has been quite the bounce in WTI since the EU session after some strong selling pressure during Thursday and overnight. Once again on Friday's session, the price has taken the USD 40 per barrel handle. 

Oil News

Forex MAJORS

Cryptocurrencies

Signatures