USD/IDR holds upside above 14k on dismal Indonesian trade data
According to the latest trade data published by the Indonesian Statistics Bureau, the country posted a bigger-than-expected trade deficit in November.
Indonesia reported a trade deficit of $-1.33 billion vs. $-0.13 billion expected and $0.16 billion previous. The imports and exports came in at -9.24% and -5.67% respectively vs. -13.32% and -1.18% expectations and -16.39% and -6.13% respective priors.
The median forecast from economists was for a $-0.13 billion trade deficit last month, the Reuters poll showed last week.
USD/IDR is looking to extend its recovery from three-month lows reached on Friday, with the downbeat Indonesian Trade Balance data adding to the renewed weakness in the Indonesian rupiah and in turn aiding the upside in the cross. At the press time, USD/IDR keeps its bid tone intact just ahead of the 14,000 level, up +0.20% on the day.
About Indonesia’s Trade Balance
The Trade Balance released by Statistics Indonesia is a balance between exports and imports of total goods and services. A positive value shows trade surplus, while a negative value shows trade deficit. If a steady demand in exchange for Indonesian exports is seen, the Rupiah will receive a positive (or bullish) effect, while a low reading is seen as negative (or bearish).
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
