USD/IDR Price News: Rupiah snaps three-day downtrend around $14,300 on Indonesia trade data
- USD/IDR remains on the back foot around intraday low.
- Indonesia Exports grew below expectations in February but Trade Balance came in upbeat.
- Cautious optimism in the market, USD pullback also weighs on the prices.
- Risk catalysts are more important for fresh impulse.
USD/IDR stays pressured around $14,310, after refreshing the daily low to $14,293, on better-than-previous Indonesia trade numbers during early Tuesday morning in Europe. Also supporting the pair sellers is the risk-on mood and the US dollar pullback amid a sluggish Asian session.
Indonesia Exports grew 34.14% versus 327.32% expected and 25.31% prior reading in February. However, the Imports eased below 40.04% market consensus and 36.77% previous readings to 25.43% during the stated month. Above all, Trade Balance rose to $3.82B from $1.66B expected and $0.93B prior.
It’s worth noting that the latest coal ban in Indonesia may have played a role to improve the latest trade numbers.
The IDR run-up could also be linked to the comments from Indonesian Finance Minister Sri Mulyani Indrawati, crossed wires during late Friday. “Indonesia is expecting an arduous economic recovery process along with a challenging transition from the Covid-19 pandemic to an endemic,” said the diplomat per Reuters’ news quoting the Tempo. co portal.
Additionally, the US dollar’s failure to extend the three-day uptrend and hopes of overcoming the Russia-Ukraine crisis by May also underpin the IDR strength.
However, covid woes from China and firmer US Treasury yields do challenge the USD/IDR sellers.
Moving on, USD/IDR traders should pay attention to the geopolitical and covid updates for fresh impulse ahead of the US Producer Price Index (PPI) for February, expected 10.0% YoY figures, versus 9.7% prior.
Technical analysis
A convergence of the 21-DMA and 50-DMA, around $14,350, restricts short-term upside moves of the USD/IDR prices.