USD/IDR: Indonesian rupiah trims losses despite awful 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 April.
Indonesia reported a trade surplus of $-0.35 billion vs. $0.74 billion expected and $-0.20 billion previous. The imports and exports came in at -18.58% and -7.0% respectively vs. -12.73% and -2.70% expectations and -0.75% and -0.20% respective priors.
The median forecast from economists was for a $0.20 billion trade deficit last month, the Reuters poll showed last week.
FX implications
USD/IDR trims gains despite downbeat Indonesian Trade Balance data, moving away from daily tops of 14,910. At the press time, the cross trades 0.27% higher at 14,880.
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.
