USD/IDR: A drop to 14,925 should not be ruled out – UOB

Pablo Piovano FXStreet

A decline to the 14,925 region appears in the pipeline ahead of some stabilization in USD/IDR, notes Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

“We highlighted last Monday that ‘the sharp and rapid drop in USD/IDR has room to extend’. We added, ‘in view of the deeply oversold conditions, a sustained drop below the major support at 14,095 is unlikely’. USD/IDR dropped to a low of 14,945 before rebounding to end the week at 14,990 (-1.06%).”

“While conditions remain oversold, the weakness in USD/IDR has not stabilized. This week, barring a break above 15,230, USD/IDR could drop to 14,925 before stabilization is likely.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD struggles at 0.70, retreats as Oil shock boosts the USD

The Australian Dollar ended Monday’s session with losses of close to 0.40% amid thin liquidity due to the Columbus Day holiday, with most US cash markets closed, as market participants were guided by the latest geopolitical developments. The AUD/USD trades near 0.6950 after peaking below 0.7000.

USD/JPY hovers above 158.00 amid Japan/ US holiday

USD/JPY extends its range-bound price action into a new week, trading above 158.00 as bulls remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, softer US bond yields keep US Dollar bulls on the back foot and cap the pair's upside. However, geopolitical uncertainties could limit losses for the safe-haven buck amid thin liquidity due to a holiday in Japan and the US.

Gold remains vulnerable below $4,200 on Fed hike bets

Gold is under mild selling pressure on Monday, trading at around $4,170. The US Dollar advances modestly in thin trading, supported by bets that the Federal Reserve will hike rates at least one more time before year-end.

Bitcoin shows bottoming signs despite recent macro pressures

Bitcoin remained range-bound above $82,000 on Monday as upcoming US economic data and onchain indicators weigh on market sentiment. Crypto trading firm QCP Group stated in its Monday report that Bitcoin has maintained a firmer footing a year after the market’s largest single-day liquidation event.

The week ahead: A critical week as earnings and CPI test market

The Oil price is relatively stable this morning, and US and European stock markets are poised to open higher, as risk sentiment shrugs off an escalation in the Middle East and concerns about rising bond yields.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?