- USD/IDR remains pressured, pares the weekly gains even as Indonesia Retail Sales ease.
- Retail Sales ease to 14.7% versus 15.6% YoY in May.
- Indonesia marks record covid infections, virus-led deaths recently.
USD/IDR pays a little heed to the downbeat Indonesia Retail Sales figures as the pair holds lower around near $14,550 after refreshing the weekly top the previous day. Even so, the bulls are hopeful as the coronavirus (COVID-19) concerns mount in the Asia-Pacific region.
Indonesia Retail Sales for May eased below 15.6% YoY to 14.7% to provide another concern for the Indonesia rupiah (IDR) sellers. It’s worth noting that the world's fourth most populous nation has been in jeopardy of late.
While portraying the covid woes in the nation, Nikkei said, “The archipelago reported 38,391 new cases on Thursday, a record. Its daily deaths of 1,040 on Wednesday was also a record, and the first time the number rose above 1,000.”
Also contributing to the pair’s strength could be the fresh US-China tussles as the US is up for fresh sanctions on Chinese companies over the Xinjiang issue.
It should be noted that the risk-off mood put a bid under the US dollar index (DXY) by the press time.
Read: US Dollar Index track T-bond yields to bounce off 50-SMA
Looking forward, covid headlines and the Sino-American news will be the key to watch for fresh direction.
Technical analysis
Although $14,700 becomes a tough nut to crack for the bulls, USD/IDR bears are less likely to enter unless witnessing a clear downside break of a monthly support line, around $14,490 by the press time.
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