USD/IDR seesaws near 6-week low, Indonesia Retail Sales in the spotlight

USD/IDR declines to the lowest since July 31.
Sellers ignore domestic fundamental weakness amid an overall pullback in the USD.
July month Indonesia Retail Sales grabs the market’s immediate attention.

Anil Panchal FXStreet

Although no shift in Indonesia’s fundamental weakness has emerged off-late, the USD/IDR pair drops to multi-week low while trading near 14,030 amid Tuesday’s Asian session.

The US Dollar’s (USD) latest pullback following Friday’s downbeat Nonfarm Payrolls (NFP) could be considered as the key reason for the quote’s declines. Also adding to the Indonesian Rupiah (IDR) strength could be the trade optimism surrounding the US-China trade deal due to the nation’s export-driven economy.

While the White House Adviser Larry Kudlow has said that Chinese Deputies will visit the US ahead of the major US-China talks in October, the US President Donald Trump recently said in a rally that they will talk with China in next week.

Investors will now focus on July month Retail Sales figures from Indonesia after the earlier readings of Indonesia Consumer Price Index (CPI) and Consumer Confidence have already pushed the Bank Indonesia (BI) towards expecting only 5% growth rate for 2019. The Retail Sales previously contracted by 1.8% in June.

Technical Analysis

Unless bouncing back above August 23 low near 14,115, chances of the pair’s recovery to 50-day exponential moving average (EMA) level of 14,170 and subsequent rise to 14,350 seem less expected. As a result, sellers will wait for a downside break of 14,000 round-figure to aim for July month low 13,884.

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.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Changing the game: International implications of recent tariff developments

The Supreme Court ruling on International Emergency Economic Powers Act (IEEPA) tariffs provides limited relief for the rest of the world, with weighted average tariff rates modestly lower.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.