USD/IDR Price News: Rupiah retreats to $15,560 despite firmer Indonesia Inflation, PMI data

USD/IDR picks up bids to snap two-day downtrend as US Dollar rebounds during holiday-thinned markets.
Indonesia Inflation, S&P Global PMI came in firmer for December, President Widodo expects 2023 growth above 5.0%.
Markets remain inactive but doubts surrounding China seem to weigh on IDR.
US PMIs, FOMC Meeting Minutes and the US employment report will be crucial to watch for clear directions.

Anil Panchal FXStreet

USD/IDR prints to mild gains around $15,560, following a two-day downtrend, as US Dollar rebounds amid a sluggish trading day. In doing so, the Indonesia Rupiah (IDR) pair ignores downbeat Indonesia data.

That said, Indonesia's Inflation rose by 5.51% YoY versus 5.39% previous whereas the MoM figures grew by 0.66% compared to 0.09% prior release. It’s worth noting that Core Inflation grew by 3.36% YoY against 3.3% previous readings. Furthermore, Indonesia S&P Global PMI for December also improved to 50.9 versus 50.3.

Earlier in the day, Indonesia President Joko Widodo mentioned, per Reuters, that he expects 2023 growth above 5.0%.

It should be observed that the latest Indonesia Inflation figures are above the Bank Indonesia (BI) target range between 2.0% and 4.0%, which in turn should have propelled the IDR. However, economic fears surrounding China, as well as holidays in major markets seemed to have allowed the USD/IDR bears to take a breather.

Doubts over China’s economic recovery, due to the Covid outbreak, join the downbeat comments from the International Monetary Fund’s (IMF) Managing Director Kristalina Georgieva concerning Beijing, seem to underpin the US Dollar rebound. Even so, the latest headlines from Reuters seem to challenge the IDR bears by pushing back pessimism surrounding China. “Some people in China's key cities of Beijing, Shanghai and Wuhan braved the cold and a spike in COVID-19 infections to return to regular activity on Monday, confident of a boost to the economy as more recover from infections,” said Reuters.

Given the light calendar and off in multiple markets, not to forget recently mixed signals surrounding China, USD/IDR is likely to remain firmer. However, this week’s activity data from the US, Minutes of the latest Federal Open Market Committee (FOMC) meeting and December month employment numbers are crucial for clear directions.

Technical analysis

A successful trading beyond a five-month-old ascending support line, currently around $15,455, keeps USD/IDR buyers hopeful of challenging November 2022 peak of $15,821.

additional important levels

Overview
Today last price	15558.05
Today Daily Change	32.4500
Today Daily Change %	0.21%
Today daily open	15525.6

Trends
Daily SMA20	15604.88
Daily SMA50	15612.014
Daily SMA100	15341.8865
Daily SMA200	15004.6687

Levels
Previous Daily High	15731
Previous Daily Low	15412.9
Previous Weekly High	15797.35
Previous Weekly Low	15412.9
Previous Monthly High	15797.35
Previous Monthly Low	15289.45
Daily Fibonacci 38.2%	15534.4142
Daily Fibonacci 61.8%	15609.4858
Daily Pivot Point S1	15382
Daily Pivot Point S2	15238.4
Daily Pivot Point S3	15063.9
Daily Pivot Point R1	15700.1
Daily Pivot Point R2	15874.6
Daily Pivot Point R3	16018.2

Author

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.

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