- USD/IDR holds the higher ground after Indonesia’s Q4 GDP misses estimates.
- Bank Indonesia’s (BI) intervention fails to support the rupiah.
- China’s coronavirus outbreak impact weighs on the economy.
According to the latest release from Statistics Indonesia, the Indonesian economy contracted 1.74% in Q4 2019 versus -1.67% forecast and 3.06% prior to QoQ.
On an annualized basis, Indonesia’s GDP rate arrived at 4.97% compared to 5.04% expected and 5.02% earlier for the fourth quarter (Q4) 2019.
The GDP for full-year 2019 grew 5.02% from a year earlier, slower than 2018's rate of 5.17%. The poll had forecast growth of 5.03%, per Reuters.
About Indonesia’s GDP
The Gross Domestic Product released by the Statistics Indonesia is a measure of the total value of all goods and services produced by Indonesia. The GDP is considered as a broad measure of economic activity and health. Generally speaking, a high reading is seen as positive (or bullish) for the Rupiah, while a negative trend is seen as negative (or bearish).
FX Implications
USD/IDR trades near daily highs of 13,730 on below-forecasts Indonesian GDP data, as the rupiah continues to bear the brunt of the rising coronavirus risks on economic growth.
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