USD/IDR: Rupiah’s recovery mode intact even as Indonesia’s Q1 GDP contracts 2.41%
- USD/IDR defends gains despite disappointing Indonesia’s Q1 GDP
- Coronavirus outbreak impact continues to weigh on the economy.
According to the latest release from Statistics Indonesia, the Indonesian economy contracted 2.41% QoQ in Q1 2020 versus -1.27% forecast and -1.74% prior.
On an annualized basis, Indonesia’s GDP rate arrived at 2.97% compared to 4.04% expected and 4.97% seen in the fourth quarter (Q4) 2019.
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 trims gains near 15,065 despite the below-forecast Indonesian GDP data, as broad-based US dollar weakness rescues the rupiah bulls.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
