USD/IDR snaps two-day winning streak ahead of Indonesia trade data
- USD/IDR registers modest weakness amid the broad USD pullback.
- Fears of coronavirus keep the Indonesian rupiah under pressure despite an absence of any cases at home.
- Recently weak economics, BI’s bearish bias favor the buyers.
USD/IDR declines to 13,680 during the Asian session on Monday. While a broad pullback in the US dollar seems to have helped major counterparts, the pair traders are waiting for January month trade numbers for fresh impulse.
With the US markets off for the President’s Day Holiday, traders might have adhered to profit-booking moves despite the on-going market fears emanating from China.
Chinese policymakers have recently announced a slew of policy measures, ranging from liquidity infusion to corporate tax cuts, to placate traders fearing a global slowdown due to the coronavirus.
However, diplomats at the dragon nation have so far failed to achieve any noticeable victory as the latest numbers from Hubei, the epicenter of coronavirus, registered 1,933 fresh infections with 100 deaths.
Even so, the Xi Jinping & company remains positive to tackle the epidemic and pledges to take more effective measures as per the Bloomberg.
On the other hand, Indonesia hasn’t yet registered a single case of coronavirus but is struggling amid broad pessimism in Asia. The latest data from the nation have been downbeat and will keep pushing the Bank Indonesia (BI) to hold its bearish bias. However, market players will wait for January month trade numbers for immediate impulse.
Forecasts suggest the headline Trade Balance widen to $-0.27B from $-0.03B. Further, Exports could weaken to 1.19% versus 1.28% previous readouts whereas Imports might slump further to -5.66% from -5.62% prior.
Technical Analysis
Unless breaking the monthly range between 13,600 and 13,835/40, prices are less likely to register a major move.