- USD/IDR holds lower ground near intraday bottom after reversing from multi-day top.
- Indonesia Retail Sales growth plummets to multi-month low in January.
- US Dollar’s pullback amid sluggish markets, positioning for Friday’s NFP seem to probe pair buyers.
USD/IDR remains sidelined near 15,440, recently making rounds to the intraday low, even as Indonesia Retail Sales flashed disappointing data early Thursday. In doing so, the Indonesia Rupiah (IDR) pair retreats from a two-month high while snapping a three-day uptrend amid a broad US Dollar retreat.
That said, Indonesia’s Retail Sales marked a 0.6% YoY contraction in January versus 0.7% previous rise. With this, the key statistics dropped to the lowest levels since September 2021 while snapping the 15-month winning streak.
US Dollar Index (DXY) prints the first daily loss in three while keeping the early Asian session pullback from the highest levels since December 01, 2022. That said, the DXY’s latest moves seem to pay a little attention to the sour sentiment as the greenback buyers brace for Friday’s all-important US jobs report for February amid upbeat early signals.
Talking about the sentiment, the S&P 500 Futures struggles for clear directions after bouncing off a one-week low the previous day. On the same line, the US 10-year Treasury bond yields rise to 3.99%, up one basis point (bp), whereas the two-year counterpart pares intraday losses near 5.05% at the latest. It’s worth noting that US yield curve inversion widened to the highest levels since 1981 and propelled the recession fears on Wednesday. However, an absence surprise in Fed Chair Powell’s Testimony 2.0 and mixed US data seemed to have triggered the US Dollar’s latest pullback.
On Wednesday, the US ADP Employment Change rose to 242K in February versus 200K market forecasts and 119K prior (revised). Further, the US Goods and Services Trade Balance dropped to $-68.3B from the $-67.2B previous reading (revised) and $-68.9B analysts’ estimations. It should be noted that the US JOLTS Job Openings for January improved to 10.824M versus 10.6M expected but eased from 11.234M revised prior.
It should be noted that the risk profile weakened early Thursday amid headlines suggesting US President Joe Biden’s proposal for higher taxes, which in turn appears an extra economic burden amid the looming recession woes.
Looking forward, US Initial Jobless Claims for the week ended on March 03 will join the Challenger Job Cuts for February to entertain intraday traders of the USD/IDR.
Technical analysis
Despite the latest retreat, a daily closing below the 100-DMA level surrounding 15,420 becomes necessary for the USD/IDR bears to retake control.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.