USD/IDR pulls back from 3-week high ahead of Indonesia Inflation data

  • USD/IDR fails to cross 100-day EMA despite rallying to 3-week high after Fed meeting.
  • Indonesia Inflation is in the spotlight for now.

Following its run-up to the highest since July 10, the USD/IDR pair trades near to 14,110 as traders await July month Inflation data from Indonesia, up for publishing on early Thursday morning.

The quote soared the most since early-May after the US Dollar (USD) bulls cheered the Federal Reserve Chairman Jerome Powell’s comments against the start of easy money policy.

Market pessimism ahead of the key economic statistics, considering Indonesia’s downbeat performance and latest dovish comments from the Bank Indonesia (BI) Governor Perry Warjiyo, failed to weaken the Indonesian Rupiah (IDR) much.

As per the Reuters, which anticipates the inflation rate to remain near June level, the central bank expected a July inflation rate of 3.23% on-year, Governor Perry Warjiyo said on Friday, reiterating that low inflation gives BI room for more accommodative policy. BI's target range for this year is 2.5% – 4.5%.

Market forecasts favor 0.26% MoM figure of headline Inflation versus 0.55% previous readout, coupled with YoY data suggesting 3.27% mark against 3.28% prior. Further, the Core Inflation is expected to weaken to 3.17% from 3.25% prior announcement on a yearly format.

Technical Analysis

A 100-day exponential moving average (EMA), at 14,178 now, becomes immediate important resistance, a break of which can propel prices to July month high near 14,240. However, a sustained trading below the key EMA may please sellers with 14,000 round-figure.

    1. R3 14298.7 
    2. R2 14216.35 
    3. R1 14169.7 
  1. PP 14087.35 
    1. S1 14040.7
    2. S2  13958.35
    3. S3  13911.7


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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

EUR/USD in a phase of bearish consolidation around 1.0850, US NFP eyed

With the US dollar bulls taking a breather following the latest upsurge, EUR/USD is licking its wounds ahead of the European open. The spot trades close to the six-day lows reached Thursday at 1.0820, as it awaits the critical US data for the next direction.


GBP/USD: Weaker below 1.2400 ahead of UK PMI, US data

GBP/USD bears the burden of broad US dollar strength while waiting for fresh impulse. UK plans to issue coronavirus “immunity passports”. Final reading of the UK’s March PMIs, US jobs report and ISM Non-Manufacturing PMI will be in focus.


Forex Today: Coronavirus risks loom, USD bulls take a breather ahead of US Payrolls

The relentless rise in the coronavirus cases world-wide continues to keep the investors on the edge. The US dollar continued to enjoy the safe-haven flows, as the Asian equities turned negative alongside the US stock futures.

Read more

WTI: Depressed below $24.00 as traders fail to cheer hopes for production cut

WTI fails to keep buyers hopeful as fears of coronavirus outbreak renew. China’s Caixin Services PMI came in positive, US President Donald Trump reiterated hopes for Saudi-Russian pact for an oil production cut. US economic docket, virus news will be the key for near-term direction.

Oil News

Gold: Probes monthly resistance trendline above $1,600

Gold struggles between 61.8% Fibonacci retracement and near-term key resistance line. Bullish MACD, sustained trading beyond key supports keep buyers hopeful. 100-day SMA, 38.2% will keep sellers away.

Gold News