|

USD/IDR Price News: Rupiah retreats from 11-month high to 14,700 amid mixed Indonesia Inflation

  • USD/IDR picks up bids to snap eight-day downtrend, recovers from the lowest levels since June 2022.
  • Indonesian Inflation, Core Inflation eased in April despite staying beyond 2% to 4% range.
  • Cautious optimism in Asia-Pacific zone fails to please Indonesia Rupiah buyers.
  • Second-tier US data can entertain USD/IDR traders ahead of Fed, NFP.

USD/IDR justifies downbeat Indonesia inflation while bouncing off an 11-month low to 14,710 heading into Tuesday’s European session. In doing so, the Indonesia Rupiah pair fails to cheer a retreat in the US Dollar prices amid a sluggish session due to the mixed sentiment and anxiety ahead of the key data/events.

Indonesia’s headline Inflation eased to 4.33% YoY in April from 4.97% prior and 4.39% market forecasts while the monthly inflation figures came in mixed to 0.33% versus 0.37% expected and 0.18% prior. Further, the Core Inflation eased to 2.83% during the stated month from 2.89% analysts’ estimation and 2.94% prior.

Reuters released Statistics Indonesia chief Margo Yuwono’s comments after the Inflation data as saying, “Higher transportation fares and prices of fuel and some food commodities around the Islamic holy month of Ramadan contributed to April's inflation,” the policymaker also added, “although the increase was more benign than the Ramadan month in previous years.”

On the same line, Indonesia's Finance Minister (FinMin) Sri Mulyani Indrawati, also the governor of Bank Indonesia (BI), said recently that growth in the ASEAN region remains robust and continues to be an important component for global economic growth.

Elsewhere, markets in the Asia-Pacific region remain cautiously optimistic after the International Monetary Fund (IMF) anticipated them to be the most dynamic of the world's major regions in 2023, per the latest reports.

It should be noted, however, that talks surrounding the US default seem to challenge the market’s previously US Dollar positive bias. That said, US Treasury Department renewed fears of US default by pulling forward the date of running out of funds to match obligations if the current debt ceiling isn’t altered, to June 01 from previously signaled July.

On the other hand, relief from the US First Republic Bank issue allowed traders to take a breather as the US regulators seized assets of the First Republic Bank and sold them to a new buyer, namely JP Morgan. The same could be held responsible for the USD/IDR pair’s hesitance in rallying much. Furthermore, Axios came out with headlines suggesting the US allies’ preparations for the US-China war over Taiwan, which in turn keeps the Euro bears hopeful, via the US Dollar’s haven demand.

Moving on, the US Factory Orders for March, expected to rise by 0.8% MoM versus -0.7% prior, may entertain USD/IDR traders ahead of this week’s Federal Reserve (Fed) monetary policy meeting and the US jobs report for April.

Technical analysis

USD/IDR recovers from a lower line of the two-month-old descending triangle, currently near 14,615, backed by the oversold RSI (14) line. The recovery moves, however, need validation from the stated triangle’s top line, close to 14,885 at the latest, to convince the pair buyers.

Additional important levels

Overview
Today last price14701
Today Daily Change25.9500
Today Daily Change %0.18%
Today daily open14675.05
 
Trends
Daily SMA2014866.285
Daily SMA5015100.202
Daily SMA10015207.3535
Daily SMA20015221.9965
 
Levels
Previous Daily High14683
Previous Daily Low14638
Previous Weekly High14985.35
Previous Weekly Low14627
Previous Monthly High15419.05
Previous Monthly Low14627
Daily Fibonacci 38.2%14665.81
Daily Fibonacci 61.8%14655.19
Daily Pivot Point S114647.7
Daily Pivot Point S214620.35
Daily Pivot Point S314602.7
Daily Pivot Point R114692.7
Daily Pivot Point R214710.35
Daily Pivot Point R314737.7

Author

Anil Panchal

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

More from Anil Panchal
Share:

Editor's Picks

GBP/USD revisits 1.3530; Dollar pushes harder

GBP/USD adds to the weekly correction and recedes toward the 1.3530 zone on Friday. Indeed, Cable faces increasing selling pressure on the back of extra gains in the Greenback, particularly fuelled by Chair Warsh’s speech at the Jackson Hole Symposium and the US NFP Annual Revision (-79K).

EUR/USD breaches below 1.1600, multi-day lows

EUR/USD now accelerates its decline and retreats to seven-day troughs in the sub-1.1600 region at the end of the week. The pair’s pullback comes on the back of the strong rebound in the US Dollar after Chair Warsh delivered a hawkish message in Jackson Hole, while the US NFP Annual Revision came in at -79K.

Gold challenges its 200-day SMA near $4,530

Gold’s decline gathers fresh steam, hitting weekly lows while disputing its critical 200-day SMA near $4,530 per troy ounce. The yellow metal’s increasing weakness comes in response to the generalised upbeat tone in the US Dollar and the widespread rebound in US Treasury yields, as investors continue to reprice a Fed rate hike in September.

Crypto Today: Bitcoin, Ethereum, XRP rally loses steam despite steady ETF inflows

Bitcoin is back below $80,000 at the time of writing on Friday, after a second attempt at breaking resistance between $81,000 and $82,000. Meanwhile, Ethereum and Ripple mirror Bitcoin’s cooling trend, with ETH sliding to $2,500 and XRP falling toward $1.40 support.

Week ahead – RBNZ and BoC decide on rates ahead of all-important US NFP

Dollar rebounds ahead of ISM PMI and NFP data. RBNZ is expected to raise rates; focus to fall on forward guidance. BoC is set to remain on hold; will it raise rates in 2027?

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.