- USD/IDR recovers from intraday low following the mixed data.
- Indonesia Trade Balance recede, Imports and Export both rose past expectations in June.
- Indonesia marked record covid infections the previous day.
USD/IDR picks up bids to $14,503, up 0.14% intraday, amid the early Thursday. The Indonesian rupiah (IDR) pair recently gained from the downbeat trade numbers of the Pacific nation. Also favoring the cross-currency could be the coronavirus (COVID-19) woes in Indonesia.
As per the latest data, Indonesia's Trade Balance eased below the $2.23B forecast and $2.37B prior to $1.32B in June. Details suggest that the Imports and Exports grew past 51.35% and 49.90% expected figures to 60.12% and 54.46% during the stated month.
Elsewhere, Indonesia, unfortunately, leads the Asia-Pacific tally of the infections with the all-time high figures of late. The same push World Bank to trim their economic forecasts for the region by saying, “The East Asia and Pacific region, excluding China, is expected to grow 4% this year, World Bank Chief David Malpass said,” per the news. The previous GDP forecast for the region was 4.4%, published in March.
It’s worth noting that the US dollar index (DXY) benefits from the risk-off mood and adds strength to the USD/IDR upside. That said, stock futures remain sluggish while the US 10-year Treasury yields remain pressured for the second consecutive day.
Moving on, USD/IDR traders will keep their eyes on the second round of Fed Chair Jerome Powell’s bi-annual testimony to reconfirm the previous day’s bearish bias conveyed by the policymakers. Even so, the data-backed reflation fears and virus woes keep USD/IDR sturdy.
Technical analysis
Unless providing a daily closing below the monthly support line near $14,460, as well as marking sustained trading below the 100-day SMA level of $14,420, USD/IDR bears are likely to refrain from entry.
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